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Simple Company Reported the Following: Sales of $10 Million; Profit

Question 31

Multiple Choice

Simple Company reported the following: sales of $10 million; profit of $1.5 million; asset intensity of 40%; and leverage of 400%. What amount of total net assets did Simple Company's report?


A) $40 million
B) $600,000
C) $4 million
D) $25 million

Correct Answer:

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