Selected Current Year Company Information Follows: Net Income $~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~\$$ 15,953
Net Sales

question 188

Multiple Choice

Selected current year company information follows: Net income $~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~\$$ 15,953
Net sales $~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~$ 712,855
Total liabilities, begirning-year $~~~~~~~~~~~~~~~~~~~~~~$ 83,932
Total liabilities, end-of-year $~~~~~~~~~~~~~~~~~~~~~~~~~~$ 103,20
Total stockholders' equity, begirnirg-year $~~~~~~~~~$ 198,935
Total stockholders' equity, end-of-year $~~~~~~~~~~~~~$ 121,85




The total asset turnover is:

• A)2.24 times
• B)2.81 times
• C)3.64 times
• D)4.67 times
• E)6.28 times

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Definitions:

Group Depreciation Method

An accounting method that applies a single depreciation rate to a group or pool of assets with similar characteristics and useful lives, instead of depreciating each asset individually.

Depreciation Rate

The percentage rate at which an asset is depreciated across its useful life, essentially spreading its cost over time.

Residual Value

The estimated amount that an asset will be worth at the end of its useful life, after depreciation has been subtracted.