Rent-A-Centre
Selected Data from the Financial Statements Are Provided in the Following

question 119

Multiple Choice

Rent-a-Centre
Selected data from the financial statements are provided in the following table:
$\begin{array}{lrr}&\text { Year } 2&\text { Year } 1\\\text { Current assets } & \$ 12,000 & \$ 6,000 \\\text { Long-term assets } & 14,000 & 8,000 \\\text { Current liabilities } & 4,000 & 6,000 \\\text { Long-term liabilities } & 14,000 & 0 \\\text { Shareholders' equity } & 8,000 & 8,000 \\\text { Net sales } & 19,000 & 18,200 \\\text { Net income } & 2,000 & 1,000\end{array}$
-Refer to the figure Rent-a-Centre.What is the company's asset turnover ratio for Year 2?

• A) 0.73
• B) 0.95
• C) 1.3
• D) 2.4

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Definitions:

Spurious

Lacking authenticity or validity in essence or origin; not genuine.

Association

Exists between two variables if the value of one variable changes with the value of the other.

Independent

Being self-governing or not influenced by external control, often describing a state of autonomy or self-reliance.

Qualitative

Pertaining to descriptions or distinctions based on qualities rather than on quantity or numerical values, often used in research to explore complex phenomena.