Delavan Company Has Fixed Assets of $5 Billion,current Assets of $2

question 3

Multiple Choice

Delavan Company has fixed assets of $5 billion,current assets of $2 billion,long-term liabilities of $2 billion,current liabilities of $1 billion,and owners' equity of $5 billion.What is Delavan's debt-to-equity ratio?

• A) .6
• B) .9
• C) 1.2
• D) .4
• E) .8

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Definitions:

Machine-Hours

A measure of production time where one machine-hour equals the operation of one machine for one hour.

Direct Labor-Hours

The total hours worked by employees directly involved in the manufacturing process, used as a base for allocating overhead costs to products.

Machining

A manufacturing process involving the shaping of metal or other materials through controlled material-removal techniques.

Customizing

The process of making or modifying something according to a customer's individual requirements.