Industrial Medical Supply Has Net Sales of $1,200,000,net Income of $85,000,average

question 82

Multiple Choice

Industrial Medical Supply has net sales of $1,200,000,net income of $85,000,average current assets of $53,000,average fixed assets of $184,000,and average total assets of $237,000.Industrial Medical Supply's fixed asset turnover ratio is:

• A)5)06.
• B)0)15.
• C)6)52.
• D)22.64.

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Definitions:

Controlling Account

A general ledger account that summarizes the total balances of several subsidiary accounts.

Accounts Payable

Liabilities to suppliers or creditors for items or services purchased on credit.

Merchandise Inventory

The total cost of all the goods owned by a company that are intended for sale, during a particular accounting period.

Permissive Parents

A parenting style characterized by low demands with high responsiveness, where parents are very lenient and often only step in when serious problems arise.