At the End of Last Year,Cessa Company Had Total Assets

question 81

Multiple Choice

At the end of last year,Cessa Company had total assets in the amount of $4,000,000 and total liabilities in the amount of $3,000,000.The company sold stock to new shareholders at the beginning of the current year for $1,000,000.As a direct result of this transaction,the:

• A)debt-to-assets ratio will decrease.
• B)asset turnover ratio will increase.
• C)net profit margin ratio will increase.
• D)net profit margin ratio will decrease.

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Definitions:

Reconstructions

Refers to the period following the Civil War during which the Southern states were rebuilt and reintegrated into the Union.

Civil War

A conflict between different groups within the same country, often characterized by intense violence and lasting societal impacts.