You have the following information on Zip's Diner, Inc.: sales to working capital = 8 times, profit margin = 5 percent, net income available to common stockholders = $20 million, and current liabilities = $4 million. What is the firm's balance of current assets?
A) $4.125m
B) $6.5m
C) $46m
D) $54m

Question

Quizplus · Accepted Answer

The Answer of You have the following information on Zip's Diner, Inc.: sales to working capital = 8 times, profit margin = 5 percent, net income available to common stockholders = $20 million, and current liabilities = $4 million. What is the firm's balance of current assets?
A) $4.125m
B) $6.5m
C) $46m
D) $54m

You Have the Following Information on Zip's Diner, Inc