The Following Information Pertains to Diane Company Liabilities and Stockholders' Equity

question 66

Multiple Choice

The following information pertains to Diane Company. Assume that all balance sheet amounts represent both average and ending balance figures and that all sales were on credit.
Assets
$\begin{array}{lr}\text { Cash and short-term investments } & \$ 30,000 \\\text { Accounts receivable (net) } & 20,000 \\\text { Inventory } & 15,000 \\\text { Property, plant, and equipment } & 185,000 \\\text { Total assets } & \$ 250,000\end{array}$ Liabilities and Stockholders' Equity
$\begin{array}{lr}\text { Current liabilities } & \$ 45,000 \\\text { Long-term liabilities } & 70,000 \\\text { Common stock } & 80,000 \\\text { Retained earnings } & 55,000 \\\text { Total liabilities and stockhol ders' equity } & \$ 250,000\end{array}$ Income Statement
$\begin{array}{lr}\text { Sales } & \$ 85,000 \\\text { Cost of goods sold } & 45,000 \\\text { Gross margin } & \$ 40,000 \\\text { Operating expenses } & (15,000) \\\text { Interest expense } & (5,000) \\\text { Net income } & \$ 20,000\end{array}$
$$\begin{array} { l r } \text { Number of shares of common stock outstanding } & 6,000 \\\text { Market price of common stock } & \$ 20 \\\text { Total dividends paid } & \$ 9,000 \\\text { Cash provided by operations } & \$ 30,000\end{array}$$ ​
​
-What is the asset turnover for Diane Company?

---

Definitions:

Conceptions

The act of forming ideas, notions, or theories about something, often based on how individuals perceive and understand the world.

Truth

The quality or state of being in accord with fact or reality; often considered to be universal, objective, or absolute in nature.

Mystical Experiences

Profound, often spiritual or transcendental experiences that provide a direct and intimate connection to the ultimate reality or divine.

Rituals and Traditions

Established patterns of behavior and ceremonies that are performed by a society, culture, or religion.