Miller Bros

question 32

Multiple Choice

Miller Bros.Hardware is operating at full capacity with a sales level of $689,700 and fixed assets of $468,000.The profit margin is 7 percent.What is the required addition to fixed assets if sales are to increase by 10 percent?

• A)$3,276
• B)$4,680
• C)$28,400
• D)$32,760
• E)$46,800

Grasp the importance of the current ratio and working capital measurement in assessing a company's liquidity.

Comprehend the debt to total assets ratio for evaluating a company's solvency.

Identify the relevance of the price-earnings ratio in assessing a company's stock value.

Understand the basic earnings per share and its significance to investors.

---

Definitions:

Salt Dome

A type of geological formation where a mass of salt has risen upward through the overlying rock, often creating traps for oil and gas.

Oil Field

An area underlain by one or more reservoirs containing oil that can be extracted, often associated with gas deposits.

Impermeable Reservoir

A geological formation that cannot transmit water or other fluids, often trapping fluids such as oil or natural gas.

Sandstone Lens

A body of sandstone that is thicker in the middle and tapers towards the edges, often sandwiched between other rock layers.