Hansen Corporation Had Net Income for the Year of $200,000

question 82

Short Answer

Hansen Corporation had net income for the year of $200,000 and a profit margin of 25%. If total average assets were $400,000, the asset turnover ratio was ____________ times.

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Definitions:

Marginal Tax Rate

The rate at which the last dollar of income is taxed, indicating the percentage of tax applied to your next dollar of income.

Net Investment

The total amount spent by a company or economy on capital assets, minus depreciation. This indicates how much is being spent on new or replacement assets.

Accounts Receivable

Funds that customers owe to a business for products or services that have been provided but not yet compensated for.

Installation

The process of setting up and configuring hardware or software systems to make them ready for operation.