A Company Had Net Income of $40,000, Net Sales of $300,000

question 150

Multiple Choice

A company had net income of $40,000, net sales of $300,000, and average total assets of $200,000. Its profit margin and total asset turnover were respectively:

• A) 13.3%; 0.2.
• B) 13.3%; 1.5.
• C) 2.0%; 1.5.
• D) 1.5%; 0.2.
• E) 1.5%; 13.3.

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Definitions:

Right Side

Refers to the side of an object, body, or entity that is to the east when facing north.

Orthostatic Hypotension

A form of low blood pressure that happens when standing up from sitting or lying down, often causing dizziness or lightheadedness.

Trochanter Roll

A support device placed beside the hips and upper leg to maintain proper alignment and prevent the legs from turning outward.

Ilium

The large, broad bone forming the upper part of each half of the pelvis.