Duncan Reported Net Sales of $2,523 Million and Average Total

question 28

True/False

Duncan reported net sales of $2,523 million and average total assets of $1,476 million. Its total asset turnover equals 1.71.

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Definitions:

360-Day Year

A conventional method in finance where the year is assumed to have 360 days for simplifying interest rate calculations, commonly used in commercial lending.

Exact Simple Interest

Interest calculated based on the actual number of days in the loan period divided by the exact number of days in a year, typically 365 or 366.

365-Day Year

A conventional method used in finance that assumes all years have 365 days for the purpose of interest calculation.

Exact Simple Interest

Interest calculated precisely on the principal amount, without compounding, for a specific time period.