Calculate Assets Turnover for a Car Manufacturing Company from the Following

question 44

Multiple Choice

Calculate assets turnover for a car manufacturing company from the following information: Sales = $600,000
Land and building = $110,000
Cash at bank = $50,000
Inventories = $40,000

• A) 2 times
• B) 3 times
• C) 5 times
• D) 4 times
• E) 6 times

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Definitions:

Liabilities

Financial obligations or debts that a company owes to others, which must be paid back in the future.

Profit Margin

Profit margin is a measure of profitability, calculated as net income divided by revenue, showing the percentage of each dollar of revenue that becomes profit.

Revenue

The total income generated by a company from its business activities, such as sales of goods or services, before any expenses are deducted.