Motor Works Has Total Assets of $919,200,long-Term Debt of $264,500,total

question 113

Multiple Choice

Motor Works has total assets of $919,200,long-term debt of $264,500,total equity of $466,900,net fixed assets of $682,800,and sales of $1,021,500.The profit margin is 6.2 percent.What is the current ratio?

• A).79
• B).84
• C)1.01
• D)1.26
• E)1.19

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Definitions:

Glue

A substance used to bind materials together by surface attachment, widely used in various manufacturing and crafting applications.

Direct Costs

Costs that can be directly tied to the production of specific goods or services, such as raw materials and direct labor.

Accounting Period

A span of time during which financial events are recorded and compiled into financial statements.

Variable Costs

Expenditures that fluctuate with the quantity of production or the volume of sales.