The Balance Sheet of Sound Designs Reports Total Assets of $750,000

question 6

Multiple Choice

The balance sheet of Sound Designs reports total assets of $750,000 and $800,000 at the beginning and end of the year,respectively.Sales revenues are $1.5 million ($1.2 million in the previous year) ,net income is $150,000,and net cash flows from operating activities are $175,000.What is Sound Designs' asset turnover?

• A) 2.0 times.
• B) 1.7 times.
• C) 0.5 times.
• D) 1.9 times.

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Definitions:

Critical Thinking

The skill of logically breaking down ideas, identifying fallacies, and understanding arguments.

Resistance

Opposition or pushback against forces or ideas, often manifesting in social, political, or personal contexts.

Art of Reasoning

The skillful use of thinking and logic to form conclusions, solve problems, and engage in persuasive discourse.

Thomas Jefferson

An American Founding Father, the principal author of the Declaration of Independence, and the third President of the United States.