What Are the Annual Sales for a Firm with $400,000

question 75

Multiple Choice

What are the annual sales for a firm with $400,000 in debt,a total debt ratio of 0.4,and an asset turnover of 3?

• A) $333,333
• B) $1,200,000
• C) $1,800,000
• D) $3,000,000

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Definitions:

Intermediaries

Entities that act as a middleman between two parties in a financial transaction, such as brokers, agents, and dealers.

Banks

Financial institutions licensed to receive deposits and make loans, offering various other services like wealth management, currency exchange, and safe deposit boxes.

Transactions

In computing and databases, a series of operations performed as a single logical unit of work, often required to be atomic, consistent, isolated, and durable (ACID).

Capillaries

The smallest blood vessels in the body's circulatory system, connecting arterioles and venules, where gas, nutrient, and waste exchange occur.