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:

Precise

Being exact, accurate, and clearly expressed or delineated.

Objective

A specific, measurable, achievable, relevant, and time-bound goal that an individual or organization aims to accomplish.

Intuitive

Pertaining to or based upon intuition, often involving a grasp of truths, relationships, facts, or the like, spontaneously or without logical reasoning.

Framing Error

A cognitive bias where the way information is presented influences decision making or judgment.