Table 152 the Company Earns 5 Percent on Current Assets

Multiple Choice

Table 15.2 The company earns 5 percent on current assets and 15 percent on fixed assets. The firm's current liabilities cost 7 percent to maintain and the average annual cost of long-term funds is 20 percent.
-The firm's initial ratio of current assets to total assets is ________. (See Table 15.2)

A) 3:1
B) 1:3
C) 2:1
D) 2:3