Suppose Phil's Fisheries (PF)has a Total Asset Turnover Ratio of 1.90

question 3

Multiple Choice

Suppose Phil's Fisheries (PF) has a total asset turnover ratio of 1.90 and a return on total assets of 7.20%.What is PF's net profit margin?

• A)3.79
• B)13.68
• C)9.10
• D)None of the above

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Definitions:

FOB Shipping Point

A term used in shipping indicating that the buyer assumes ownership and the risk of loss of goods once the seller ships the product.

FOB Destination

A shipping term indicating that the seller is responsible for the goods and the shipping cost until the items reach the buyer's specified location.

Net Sales

Total sales revenue after deducting returns, allowances for damaged or missing goods, and discounts.

Cost of Goods Sold

An accounting term referring to the direct costs attributable to the production of the goods sold in a company.