A Company Had Net Sales of $541,500 in 2010 and $475,300

question 132

Essay

A company had net sales of $541,500 in 2010 and $475,300 in 2011. Its average assets were $410,000 for 2010 and $400,000 for 2011. (1) Calculate the total asset turnover for each year. (2) Interpret and comment on the company's efficiency in the use of its assets.

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Definitions:

Neural Signals

Electrical impulses transmitted through neurons, facilitating communication within the nervous system.

Excitatory

Referring to neurons or substances that increase the likelihood of a neuron firing, thus promoting neural activity.

Inhibitory

Describes something that restrains, blocks, or suppresses a specific action, process, or reaction in biological or chemical systems.

Limbic System

A complex system of nerves and networks in the brain, involved in basic emotions such as fear and pleasure, and drives such as hunger and sex.