A Company Had Net Income of $43,000, Net Sales of $380,500

question 49

Multiple Choice

A company had net income of $43,000, net sales of $380,500, and average total assets of $220,000. Its profit margin and total asset turnover were, respectively:

• A) 11.3%; 1.73.
• B) 11.3%; 19.5.
• C) 1.7%; 19.5.
• D) 1.7%; 11.3.
• E) 19.5%; 11.3.

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Definitions:

Double Layer

A concept referring to structures with two layers, often used in the context of biological membranes which consist of two layers of phospholipids.

Periosteum

The dense layer of connective tissue enveloping bones except at the surfaces of the joints.

Articular Cartilage

A type of smooth, white tissue that covers the ends of bones where they come together to form joints, helping reduce friction and absorb shock.

Lubricating Film

A thin layer of liquid or other substances applied to surfaces to reduce friction and wear.