Aaron, Luc and Isaac Invested in a Business in the Ratio

question 125

Multiple Choice

Aaron, Luc and Isaac invested in a business in the ratio of 3.5: 5: 7.5. The factory that they leased requires renovations of $125,000. If the partners want to maintain their investments in the business in the same ratio, how much should each partner pay for the renovations?

• A) $58,593.75; $27,343.75; $39,062.50
• B) $35,000; $50,000; $75,000
• C) $20,000; $40,000; $60,000
• D) $27,343.75; $58,593.75; $39,062.50
• E) $27,343.75; $39,062.50; $58,593.75

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Definitions:

Financial Information

Data relating to the financial status or operations of a business, including balance sheets, income statements, and cash flow statements.

Times Interest Earned

A financial ratio that measures a company's ability to service its debt by comparing operating income to interest expense.

Financial Information

Data pertaining to the financial status or performance of an individual, business, or other entity, including reports on assets, liabilities, income, and expenses.

Liquidity and Efficiency

Financial metrics that evaluate how quickly a company can meet its short-term obligations with its available assets and how effectively it utilizes its resources.