Answered: Smith Industries has $500,000 in debt,…

Smith Industries has $500,000 in debt, a total debt ratio of 0.5, and an asset turnover of 4. What are the annual sales for Smith Industries? A. $1,000,000 B. $2,000,000 C. $4,000,000 D. $5,000,000

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter6: Accounting For Financial Management

Section: Chapter Questions

Problem 4P: Talbot Enterprises recently reported an EBITDA of $8 million and net income of $2.4 million. It had...

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Question

What are the annual sales for smith industries on these financial accounting question?

Smith Industries has $500,000 in debt, a total debt
ratio of 0.5, and an asset turnover of 4. What are
the annual sales for Smith Industries?
A. $1,000,000
B. $2,000,000
C. $4,000,000
D. $5,000,000

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