Question
Given the following financial data, measure their Current to Total Assets ratio and consider which of the following answer best fit this scenario: Current Assets
Given the following financial data, measure their Current to Total Assets ratio and consider which of the following answer best fit this scenario:
Current Assets | $3,250,688.00 |
Fixed Assets | $1,992,357.00 |
Property | $620,306.00 |
Construction Equipment | $797,325.00 |
Vehicles | $688,920.00 |
Office Equipment | $178,299.00 |
Less Depreciation | -$353,923.00 |
Other fixed assets | $61,430.00 |
Group of answer choices
-Their Current to Total Asset Ratio is consistent with industry averages, so they should be considered a low risk.
-Their Current to Total Asset ratio is not within industry standards, so it is too much of a risk.
-Their Current to Total Asset Ratio is within industry standards for an equipment-intensive contractor. However, the fixed assets are more weighted to property and vehicles and not equipment.
-Their Current to Total Asset Ratio doesn't relate to their ability to perform work.
Current to total assets ratio = current assets / total assets.
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