DJ's has total assets of $310,100 and net fixed assets of $168,500. The average daily operating costs are $2,980. What is the value of the interval measure?
A) 31.47 days
B) 47.52 days
C) 56.22 days
D) 68.05 days
E) 104.62 days

Question

Quizplus · Accepted Answer

The interval measure is calculated as (Current Assets / Average Daily Operating Costs). Current Assets = Total Assets - Net Fixed Assets = $310,100 - $168,500 = $141,600. Interval Measure = $141,600 / $2,980 ≈ 47.52 days.

DJ's Has Total Assets of $310,100 and Net Fixed Assets