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AFP CTP Question # 6 Topic 1 Discussion

CTP Exam Topic 1 Question 6 Discussion:
Question #: 6
Topic #: 1

BF Company, a manufacturer of food products, reported financial information shown in the Exhibit for the end of the year. BF Company is subject to covenants in its commercial paper program. It is in compliance with which of the following?


A.

Maximum long-term debt to capital of 52.5%


B.

Minimum working capital of $10,000


C.

Maximum dividends of 50% of net income


D.

Minimum cash flow to total debt of 45%


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