A Company Had Net Income of $40,000, Net Sales of $300,000

question 150

Multiple Choice

A company had net income of $40,000, net sales of $300,000, and average total assets of $200,000. Its profit margin and total asset turnover were respectively:

• A) 13.3%; 0.2.
• B) 13.3%; 1.5.
• C) 2.0%; 1.5.
• D) 1.5%; 0.2.
• E) 1.5%; 13.3.

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