Spears CoHad Net Sales of $35,400 Million

question 48

Multiple Choice

Spears Co.had net sales of $35,400 million.Its average total assets for the period were $14,700 million.Spears' total asset turnover equals:

• A)0.42.
• B)0.35.
• C)1.48.
• D)2.41.
• E)3.54.

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Definitions:

Net Income

The total earnings of a company after subtracting all expenses, taxes, and costs from its total revenue; also known as net profit.

Net Sales

The net amount acquired from sales after subtracting returns, allowances, and discounts.

Held-to-Maturity Securities

Financial instruments in the form of debt that a corporation plans to retain until their maturity date.

Short-Term Investments

Financial assets that are expected to be converted into cash or sold within a year, such as stocks or bonds.