A Company Had Net Income of $43,000, Net Sales of $380,500

question 49

Multiple Choice

A company had net income of $43,000, net sales of $380,500, and average total assets of $220,000. Its profit margin and total asset turnover were, respectively:

• A) 11.3%; 1.73.
• B) 11.3%; 19.5.
• C) 1.7%; 19.5.
• D) 1.7%; 11.3.
• E) 19.5%; 11.3.

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Definitions:

Interest Rate

The percentage at which interest is charged or paid on borrowed or lent money over a specific period.

Originally Scheduled Payments

Originally scheduled payments refer to the payments planned and agreed upon at the outset of a loan or mortgage, before any adjustments or changes.

Replacement Payments

Payments made to compensate for goods or services that were faulty, damaged, or otherwise inadequate, ensuring the recipient receives what was originally contracted.

Interest Rate

A percentage that measures the amount of interest due per period, as a proportion of the amount lent, deposited, or borrowed.