The Following Information Pertains to Carlton Company

question 69

Multiple Choice

The following information pertains to Carlton Company. Assume that all balance sheet amounts represent both average and ending balance figures. Assume that all sales were on credit. Assets
What is the ratio of net sales to total assets for this company? Round your answer to two decimal points.

• A) 1.00
• B) 1.89
• C) 0.36
• D) 0.29

---

Definitions:

Percentage Increase

A measure of how much a quantity has grown, typically expressed as a proportion of the starting value.

Balance Sheet

The financial statement of what is owned (assets), what is owed (liabilities), and the difference between the two (net worth) on a specific date.

Gross Profit

Revenue from sales or services minus the cost of goods sold, representing the preliminary profit figure before deducting operating expenses.

Cost of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including materials and labor.