The current ratio and the acid test ratio both measure financial leverage

The Gift Shoppe has total assets of $487,920 and an equity multiplier of 1.47. What is the debt-equity ratio?

A. .68 B. .33 C. .52 D. .47 E. .67

Assume the Thread Division has excess capacity. The Garment Division wants the Thread Division to furnish them additional spools of thread that could be made using the excess capacity. In a negotiated transfer price, the Thread Division should accept as a minimum any transfer price that exceeds the

a) total cost of producing spools for outside sales. b) variable costs of producing the additional spools for the Garment Division. c) contribution margin and outside spool sales. d) foregone contribution margin on outside spool sales.