Mehring Company Reported Net Sales of $450,000, Net Income of $90,000

question 99

Multiple Choice

Mehring Company reported net sales of $450,000, net income of $90,000, beginning total assets of $240,000, and ending total assets of $360,000. What was the company's asset turnover ratio?

• A) 1.88
• B) 0.30
• C) 1.50
• D) 1.85

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Definitions:

Annual Dividend

An annual dividend is the total amount of dividend payments a shareholder receives from a company in one financial year.

Constant Dividend

A dividend policy in which a company pays out a fixed amount of dividend per share irrespective of its financial performance.

Rate of Return

The profit or deficit realized on an investment over a certain time, denoted as a percentage of the investment's beginning price.

Annual Dividends

The total amount of dividend payments a company distributes to its shareholders over a year.