A Company Has Current Assets of $4,400,current Liabilities of $2,750,and

question 161

Multiple Choice

A company has current assets of $4,400,current liabilities of $2,750,and long-term liabilities of $5,500.If the operating cash flow ratio is 1.5,then how much must cash flows from operating activities be?

• A) $4,125
• B) $6,600
• C) $8,250
• D) $12,375

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Definitions:

Open Circuit

An electrical circuit in which the path for current flow is broken, causing the circuit not to function.

DMM

Stands for Digital Multimeter, an electronic instrument that measures electrical values such as voltage, current, and resistance.

Low-Amperage Circuits

Electrical circuits designed to carry a small amount of electrical current, often for delicate electronic devices or low power applications.

Resistance

The opposition offered by a material or device to the flow of electrical current, measured in ohms.