A company has net working capital of $500, net fixed assets of $3,000, sales of $7,500, and current liabilities of $900. How many dollars worth of sales are generated from every $1 in total assets? A) 2.150 B) 1.900 C) 1.705 D) 2.055

A company has net working capital of $500, net fixed assets of $3,000, sales of $7,500, and current liabilities of $900. How many dollars worth of sales are generated from every $1 in total assets? A) 2.150 B) 1.900 C) 1.705 D) 2.055

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter7: Analysis Of Financial Statements

Section: Chapter Questions

Problem 7P: Ace Industries has current assets equal to 3 million. The companys current ratio is 1.5, and its...

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Question

Please provide the solution to this general accounting question using proper accounting principles.

A company has net working capital of $500, net fixed
assets of $3,000, sales of $7,500, and current
liabilities of $900.
How many dollars worth of sales are generated from
every $1 in total assets?
A) 2.150
B) 1.900
C) 1.705
D) 2.055

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