Dean Hardware, Inc

question 79

Multiple Choice

Dean Hardware, Inc. is comprised of five operating segments. Information about each of these segments is as follows (in thousands; Intersegment loans are receivables) : In applying the asset test, what is the minimum amount an operating segment must have in order to meet the asset test for a reportable segment?

• A) $12.5.
• B) $15.2.
• C) $17.2.
• D) $18.4.
• E) $19.8.

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Definitions:

Quick Ratio

A liquidity indicator that evaluates a company's ability to pay its current liabilities without relying on the sale of inventory, calculated as (current assets - inventory) / current liabilities.

Bad Debt Expense

Expense associated with estimated uncollectible accounts receivable.

DuPont Model

A financial analysis framework that breaks down return on equity into three components: profit margin, asset turnover, and financial leverage.