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:

Directly Related

A term describing entities or factors that are connected in a straightforward and immediate way, influencing each other's behavior or outcomes.

Firm Bidding

A procurement and contracting method where bidders submit fixed price proposals that cannot be altered after submission.

Best-And-Final-Offers

Best-and-final offers are the last and most competitive bids or proposals requested from suppliers or contractors during a negotiation, after which a selection is made.

Clarify

To make a statement or situation less confused and more understandable.