A Victoria firm has total assets of $126,740 and net fixed assets of $82,408. The average daily operating costs are $1,211. What is the value of the interval measure?
A) 1.47 days
B) 2.73 days
C) 36.61 days
D) 68.05 days
E) 104.66 days

Question

Quizplus · Accepted Answer

The interval measure is calculated by dividing the firm's current assets by its average daily operating costs. First, find the current assets by subtracting net fixed assets from total assets: $126,740 - $82,408 = $44,332. Then, divide this by the average daily operating costs: $44,332 / $1,211 = 36.61 days.

A Victoria Firm Has Total Assets of $126,740 and Net