Excerpts from TPX Company's December 31,2018 and 2017,financial Statements Are

question 19

Multiple Choice

Excerpts from TPX Company's December 31,2018 and 2017,financial statements are presented below: TPX Company's 2018 asset turnover is (rounded to one decimal place) :
$$\begin{array} { | l | r | r | } \hline & \mathbf { 2 0 1 8 } & \mathbf { 2 0 1 7 } \\\hline \text { Accounts receivable } & \$ 80,000 & \$ 72,000 \\\hline \text { Inventory } & 84,000 & 70,000 \\\hline \text { Net sales } & 400,000 & 372,000 \\\hline \text { Cost of goods sold } & 254,000 & 216,000 \\\hline \text { Total assets } & 850,000 & 810,000 \\\hline \text { Total stockholders' equity } & 500,000 & 450,000 \\\hline \text { Net income } & 75,000 & 56,000 \\\hline\end{array}$$

• A)3.7 times.
• B)2.8 times.
• C)2.2 times.
• D)0.5 times.

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Definitions:

Quality Cost Report

A financial report that outlines the costs associated with ensuring and maintaining the quality of products or services.

Appraisal Cost

Expenses related to the evaluation and inspection of products and services to ensure they meet quality standards and are defect-free.

Quality Cost Report

A document that details the costs associated with ensuring the quality of a product or service.

Final Product Testing

The process of verifying that a product meets the required specifications and quality standards before it is delivered or sold.