1Investments, $75,000 in Net Current Receivables, and $12,000 in Prepaid

question 64

Multiple Choice

1.investments, $75,000 in net current receivables, and $12,000 in prepaid expenses. The total current liabilities of the firm are $90,000. Barts Industries' current ratio is:

• A)1)47.
• B)1)71.
• C)0)64.
• D)1)33.

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Definitions:

Debt-Equity Ratio

The ratio demonstrating the proportionate role of debt and equity in a company's asset financing scheme.

Payout Ratio

The percentage of a company's earnings that is paid out to shareholders in the form of dividends.

Internal Growth Rate

The internal growth rate is a measure of an organization's ability to increase its sales and profit without issuing more stock or incurring new debt.

Full Capacity

A term referring to the maximum level of production or output that a facility can achieve under normal operating conditions.