Use the Following Information to Calculate Current Assets: Sales =

question 47

Multiple Choice

Use the following information to calculate current assets: sales = $100 million, capital intensity ratio = 0.5 times, debt ratio = 30 percent, and fixed asset turnover ratio = 5 times.

• A) $10m
• B) $15m
• C) $30m
• D) $50m

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Definitions:

Cash Register

A machine used in retail for calculating and recording sales transactions and storing money.

Cash Sales

Cash sales refer to transactions where payment is made in cash at the time of sale, without deferral.

Petty Cash Account

A small amount of cash kept on hand for minor or incidental expenses, managed through a specified fund.

Purpose

The reason for which something is done or created or for which something exists.