Refer to the Tables Above

question 44

Multiple Choice

$\begin{array} {c } \text {MARNI COMPANY }\\ \text { Balance Sheet}\\ \text { As of December 31}\\\begin{array}{lrr}\text { ASSETS }\\\text { Cash } & \$ 50,000 \\\text { Accounts receivable } & 100,000 \\\text { Inventory } & 200,000 \\\text { Net plant and equipment } & 650,000\\\text { Total assets }&\$1,000,000\\\\\text { LIABITTES AND STOCKHOLDER.S' EQUTTY }\\\text { Accounts payable } & \$ 100,000 \\\text { Accrued expenses } & 90,000 \\\text { Long-term debt } & 250,000 \\\text { Common stock } & 100,000 \\\text { Paid-in capital } & 50,000 \\\text { Retained earnings } & 410,000\\\text { Total liabilities and stockholders' equity }&\$1,000,000\end{array}\end{array}$

$\begin{array} {c } \text {MARNI COMPANY }\\ \text {Income Statement }\\ \text {For the year ended December 31 }\\\begin{array} { l } \text {Sales (all on credit) }&\$2,000,000\\ \text {Cost of goods sold }&1,750,000\\ \text { Gross profit}&\$250,000\\ \text {Sales and administrative expenses }&30,000\\ \text { Fixed lease expenses}&10,000\\ \text {Depreciation }&60,000\\ \text { Operating profit}&\$150,000\\ \text {Interest expense }&25,000\\ \text { Profit before taxes}&\$125,000\\ \text { Taxes (40 \%) }&50,000\\ \text {Net income }&\$75,000\\\end{array}\end{array}$

Refer to the tables above. What is Marni's total asset turnover?

• A) 13.3x
• B) 4x
• C) 1x
• D) 2x

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Definitions:

Assertiveness

The quality of being self-assured and confident without being aggressive, in expressing one's rights, needs, and opinions.

Cooperation

The process of working together towards a common goal, involving mutual assistance and collaboration.

Constructive Conflict

Refers to disagreement that leads to productive discussions, creative solutions, and team improvement.

Indicator Variable

A variable that takes on the value of 0 or 1 to indicate the absence or presence of a specific condition or attribute.