During 2014, Phelps Corporation Reported Net Sales of $3,000,000, Net

question 285

Multiple Choice

During 2014, Phelps Corporation reported net sales of $3,000,000, net income of $1,320,000, and depreciation expense of $80,000. Phelps also reported beginning total assets of $1,000,000, ending total assets of $1,500,000, plant assets of $800,000, and accumulated depreciation of $500,000. Phelps's asset turnover ratio is

• A) 1.5 times.
• B) 1.2 times.
• C) 2.0 times.
• D) 2.4 times.

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Definitions:

Fundamental Attribution Error

The assumption that others act predominantly on the basis of their dispositions, even when there is evidence suggesting the importance of their situations.

Dispositions

Inherent qualities of mind and character that influence an individual's habitual responses and behavior.

Behavioral Perspective

An approach in psychology that focuses on observable behaviors and the ways in which they are learned, often through conditioning.

Reinforced

Strengthened or encouraged to persist, often through rewards or consequences in the context of behavior conditioning.