A Company Had Net Income of $82,000,net Sales of $781,000,and

question 130

Multiple Choice

A company had net income of $82,000,net sales of $781,000,and average total assets of $300,000.Its profit margin and total asset turnover were respectively:

• A)10.5%; 0.38
• B)10.5%; 2.6
• C)9.52%; 2.6
• D)27.3%; 1
• E)27.3%; 9.52

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Definitions:

Exit Price

The amount that would be received from selling an asset or transferred liability in an orderly transaction between market participants.

Entry Price

The price at which a security or asset was bought, affecting the calculation of gains and losses for accounting or tax purposes.

Principal Market

The market with the greatest volume and level of activity for the asset.

Active Market

A market in which transactions for the asset or liability take place with sufficient frequency and volume to provide pricing information on an ongoing basis.