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1.What are the annual sales for a firm with $400,000 in debt, a total debt ratio of A, and an asset turnover of 3.0? a.
1.What are the annual sales for a firm with $400,000 in debt, a total debt ratio of A, and an asset turnover of 3.0?
a. $1,800,00
b. $1200,00
c. $133,333
d.$3,000,000
2. Which of the following would be most detrimental to a firm's current ratio if that ratio is currently 2.0?
a. buy raw materials on credit
b. Pay off accounts payable
c. Sell marketable securities at cost
d.Pay off a portion of long-term debt with cash
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