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Use This Balance Sheet and Income Statement to Answer the Following

question 159

Multiple Choice

Use this balance sheet and income statement to answer the following question.Use ending balances whenever average balances are required for computing ratios. $\begin{array}{c} \text {Abner Systems, Inc.}\\ \text {Income Statement}\\ \text {For the Year Ended December 31, 2010}\\\begin{array}{llr} \text { Net sales } &\$24,000\\ \text { Costs of goods sold } &8,000\\ \text { Gross margin } &\$16,000\\ \text { Operating expenses} &8,000\\ \text {Income before income taxes } &\$8,000\\ \text { Income taxes } &3,200\\ \text { Net income} &\$4,800\end{array}\end{array}$

$Use this balance sheet and income statement to answer the following question.Use ending balances whenever average balances are required for computing ratios. \begin{array}{c} \text {Abner Systems, Inc.}\\ \text {Income Statement}\\ \text {For the Year Ended December 31, 2010}\\ \begin{array}{llr} \text { Net sales } &\$24,000\\ \text { Costs of goods sold } &8,000\\ \text { Gross margin } &\$16,000\\ \text { Operating expenses} &8,000\\ \text {Income before income taxes } &\$8,000\\ \text { Income taxes } &3,200\\ \text { Net income} &\$4,800 \end{array}\end{array} The asset turnover for Abner Systems is A) 1.00 times. B) 1.33 times. C) .83 times. D) 1.20 times.$ The asset turnover for Abner Systems is

Definitions:

Excessive Distribution

Excessive distribution occurs when a product is over-distributed or available in too many locations, potentially diluting its brand value and leading to inefficiencies.

Situation Analysis

An assessment process to understand the internal and external factors influencing an organization's performance, as part of strategic planning.

Analysis

The process of examining data or information to understand it better, typically to draw conclusions or make decisions.

Backstage Technology

The unseen technology and systems that support front-end services and customer interactions.