The Balance Sheet of Tech Track Reports Total Assets of $400,000

question 65

Multiple Choice

The balance sheet of Tech Track reports total assets of $400,000 and $500,000 at the beginning and end of the year,respectively.Sales revenues are $1.1 million ($0.8 million in the previous year) ,net income is $40,000,and net cash flows from operating activities are $50,000.How does Tech Track's asset turnover compare to the industry average of 2.4 times?

• A)Better.
• B)Worse.
• C)Same as.
• D)Cannot be determined with the data provideD.

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Definitions:

Period Costs

Expenses that are not directly associated with manufacturing and are therefore recorded as expenses in the period in which they are incurred.

Factory Utilities

The costs associated with utilities consumed in the manufacturing process, such as electricity, water, and gas necessary for factory operations.

Product Cost

The total expenses incurred to produce and deliver a product, including direct materials, direct labor, and overhead.

Period Cost

Costs not directly associated with production, charged as expenses during the period they arise.