Extreme Sports Company and All Sports Corporation
Below Is Financial

question 49

Multiple Choice

Extreme Sports Company and All Sports Corporation
Below is financial information for two sporting goods retailers.Extreme Sports Company operates a retail business and franchising business.At the end 2011, Extreme Sports had 263 Company-owned and 120 franchise-operated retail stores.Extreme's stores are located in suburban, strip mall and regional mall locations, the company operates in 32 states.All Sports Corporation sells sporting goods and related products at over 2,500 Company-operated retail stores.
Selected Data for All Sports and Extreme Sports
(amounts in millions)
$\begin{array}{lrr} & \text { All Sports } & \text { Extreme Sports } \\\text { Sales } & \$ 5,320 & \$ 1,344 \\\text { Cost of Goods Sold } & 3,897 & 887 \\\text { Interest Expense } & 138 & 43 \\\text { Net Income } & 212 & 236 \\\text { Average Inventory } & 998 & 130 \\\text { Average Fixed Assets } & 1,163 & 662 \\\text { Average Total Assets } & 2,472 & 40 \%\end{array}$

-Refer to the information for Extreme Sports Company and All Sports Corporation.
Compute the Asset Turnover for All Sports.

• A) 3.2%
• B) 2.15
• C) 8.9%
• D) 1.1%

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Definitions:

Molecular Formula

A notation that uses chemical symbols and numerical subscripts to represent the types and quantities of atoms in a molecule.

Valence

The combining capacity of an element or particle, often determined by the number of electrons that an atom can share, gain, or lose.

Formal Charge

A concept in chemistry that represents the charge assigned to an atom in a molecule, assuming that electrons in all chemical bonds are shared equally between atoms, irrespective of electronegativity.

Nitrogen Atoms

Atoms that have five electrons in their outer shell and are essential components of amino acids, proteins, and nucleic acids.