Ramone Company Had $600,000 in Net Sales for the Year

question 90

Multiple Choice

Ramone Company had $600,000 in Net Sales for the year 2010. The total assets at the beginning of the year were $240,000 and total assets at the end of the year were $280,000. The ratio of net sales to total assets is (round answer to 2 decimal places) :

• A) 2.31
• B) 1.15
• C) .43
• D) .87

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Definitions:

Indenture Agreement

A contract between a bond issuer and bondholders, specifying terms like interest rates, maturity date, and other conditions.

Term Structure

The relationship between interest rates or bond yields and different terms or maturities, often depicted in a curve.

Inflation

The pace at which prices for services and products in general ascend, resulting in a decrease in the value of money to buy goods.

Call Provision

A feature in a bond or other fixed-income security that allows the issuer to buy back the security before its maturity date.