The Following Information Is Provided for Nguyen Company and Northwest

question 174

Multiple Choice

The following information is provided for Nguyen Company and Northwest Corporation. $\begin{array}{lll}\text { (in } \$ \text { millions) }&\text { Nguven Company }&\text { Northwest Corporation }\\\text { Net income } 2017 & \$ 165 & \$ 420 \\\text { Net sales } 2017 & 1,650 & 4,900 \\\text { Total assets } 12 / 31 / 15 & 1,000 & 2,400 \\\text { Total assets } 12 / 31 / 16 & 1,050 & 3,000 \\\text { Total assets } 12 / 31 / 17 & 1,150 & 4,000\end{array}$ What is Northwest's asset turnover for 2017?

• A)1.40 times
• B)1.63 times
• C)1.81 times
• D)1.23 times

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Definitions:

Fixed Charges

Fixed charges are ongoing, regular expenses that a company or individual must pay, such as loans, rent, and utility bills, which do not vary with business volume or activity.

Floating Charges

A security interest over a pool of changing assets of a company which "floats" until it is converted into a fixed charge, generally upon the occurrence of a default event.

Quebec Charter

A legal framework specific to the province of Quebec that outlines individual rights and freedoms.

French Language

A Romance language spoken as a first language in France, parts of Belgium and Switzerland, and in many other countries as a second language.