During 2022, Ronald Corporation Reported Net Sales of $2,000,000, Net

question 61

Multiple Choice

During 2022, Ronald Corporation reported net sales of $2,000,000, net income of $900,000, and depreciation expense of $100,000.Ronald 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.Ronald's asset turnover is

• A)2.0 times.
• B)1.6 times.
• C)1.33 times.
• D)0.72 times.

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Definitions:

Factor Suitability

A principle in economics that factors of production such as land, labor, and capital are more productive when appropriately matched with their specific uses or industries.

Law of Diminishing Returns

The Law of Diminishing Returns is an economic principle stating that as investment in a particular area increases, the rate of profit from that investment, after a certain point, cannot continue to increase if other variables remain constant.

Worker Safety

Regulations and practices designed to protect employees from hazards and risks associated with their work environment.

Dust Particles

Tiny solid particles often found in the air, resulting from soil dust, pollen, soot, and other materials.