Cleary Company Had Total Sales of $550,000; Sales Discounts of $10,000;

question 23

Multiple Choice

Cleary Company had total Sales of $550,000; Sales Discounts of $10,000; Sales Returns of $40,000 and Cost of Merchandise Sold of $200,000 during 2010. The total asset balance at the beginning of the year was $175,000 and at the end of the year was $167,000. Calculate the ratio of net sales to total assets (Round answer to 2 decimal points) .

• A) 1.75
• B) 2.92
• C) .34
• D) .57

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Definitions:

Opening Inventory

The inventory that a business has on hand at the start of an accounting period, consisting of products and materials.

Production Budget

An estimate of the total cost of production, including detailed allocations for raw materials, labor, and overhead expenses.

Units

A measure of quantity, such as items produced or services rendered, used in various business contexts.

Cash Disbursements

The total amount of money paid out by a company over a period, including expenses, investments, and debts.