A Company Has Net Income of $130,500

question 196

True/False

A company has net income of $130,500. Its net sales are $1,740,000 and its average total assets are $2,750,000. Its total asset turnover equals 4.7%.
Asset turnover = $1,740,000/$2,750,000 = 0.63 or 63%

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Definitions:

Annual Tax Bill

The total amount of taxes due to be paid each year by an individual or organization.

Property Taxes

Taxes levied by local governments on the value of real estate owned by individuals or businesses.

Valuation Rate

A rate used to estimate the current value of cash flows or assets, often used in the appraisal of businesses.

Market Value

Market value is the price at which an asset would trade in a competitive auction setting, reflecting its worth in the current market.