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:

Annual Salaries

The total amount of money that an individual earns in one year from their employment.

Plug-in Principle

A statistical method that involves estimating unknown parameters by directly substituting sample statistics (from collected data) into formulas in place of population parameters.

Population Mean

The average of all the values in a population, serving as a measure of central tendency.

Sample Mean

The average value calculated from a sample of data points, used as an estimate of the population mean.