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CHESTER HAS AN ASSET TURNOVER OF 1.49 (ASSET TURNOVER = SALES/ASSETS). THAT MEANS: A. 1 EVERY $1.49 OF PROFIT IN THE FIRM COMES FROM EACH $1.00 OF SALES. B. EACH $1.00 OF ASSETS IN THE FIRM GENERATES $1.49 OF SALES REVENUE. C. EVERY $1.49 OF ASSETS IN THE FIRM GENERATES $1.00 OF SALES. D. EVERY $1.00 OF ASSETS IN THE FIRM GENERATES $1.49 OF PROFIT.

CHESTER HAS AN ASSET TURNOVER OF 1.49 (ASSET TURNOVER = SALES/ASSETS). THAT MEANS: A. 1 EVERY $1.49 OF PROFIT IN THE FIRM COMES FROM EACH $1.00 OF SALES. B. EACH $1.00 OF ASSETS IN THE FIRM GENERATES $1.49 OF SALES REVENUE. C. EVERY $1.49 OF ASSETS IN THE FIRM GENERATES $1.00 OF SALES. D. EVERY $1.00 OF ASSETS IN THE FIRM GENERATES $1.49 OF PROFIT.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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CHESTER HAS AN ASSET TURNOVER OF 1.49 (ASSET TURNOVER = SALES/ASSETS). THAT MEANS: A. 1 EVERY $1.49 OF PROFIT IN THE FIRM COMES FROM EACH $1.00 OF SALES. B. EACH $1.00 OF ASSETS IN THE FIRM GENERATES $1.49 OF SALES REVENUE. C. EVERY $1.49 OF ASSETS IN THE FIRM GENERATES $1.00 OF SALES. D. EVERY $1.00 OF ASSETS IN THE FIRM GENERATES $1.49 OF PROFIT.
Transcribed Image Text:CHESTER HAS AN ASSET TURNOVER OF 1.49 (ASSET TURNOVER = SALES/ASSETS). THAT MEANS: A. 1 EVERY $1.49 OF PROFIT IN THE FIRM COMES FROM EACH $1.00 OF SALES. B. EACH $1.00 OF ASSETS IN THE FIRM GENERATES $1.49 OF SALES REVENUE. C. EVERY $1.49 OF ASSETS IN THE FIRM GENERATES $1.00 OF SALES. D. EVERY $1.00 OF ASSETS IN THE FIRM GENERATES $1.49 OF PROFIT.
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