CHESTER HAS AN ASSET TURNOVER OF 1.49 (ASSET TURNOVER = SALES/ASSETS). THATMEANS: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.

Similar to a financial analyst, asset turnover is a financial ratio that assesses the effectiveness…

Answered: CHESTER HAS AN ASSET TURNOVER OF 1.49…

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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Alpha has assets of $102 millión, costs of goods sold of $24.3 million, and total sales of $97 million. Omega has assets of $12.4 million, costs of goods sold of 1.77 of sales while Omega's costs of million, and total sales of $9.3 million. Based on common-size income statements, Alpha's costs of goods sold consumes goods sold consumes of sales. O 4%; 5.25% O 19%; 25% O 25%; 19% O 25%; 31%
75. If a business has an asset turnover (Sales/Assets) of 5, plans to continue its current strategy, and wants to increase sales by $1,000,000, in general, then assets will need to be increased by: O A. $5,000,000. O B. $ 200,000.
The following information is given to you relating to the operations of PrincehallCorporation: The income tax rate is 40%. Net sales $11,862 Cost of sales 8,321 Gross margin ? Selling, general, and administrative expenses $ 2,743 Depreciation, amortization, and asset write-offs 278 Total operating expenses: ? Income from operations : ? Interest expense 91 Interest and other income 11 Earnings before income taxes: ? Income taxes ? Net earnings: ? Determine the earnings before taxes:
Flask Company reports net sales of $4,343 million; cost of goods sold of $2,808 million; net income of $283 million; and average total assets of $2,150. Compute its total asset turnover. Multiple Choice 0.13. 0.77. 1.31. 2.02. 1.55.
Asset Turnover = 12 What does that mean??? a. For every $12 in total assets, you generated $1.00 in sales. b. You used up your inventory 12 times this period. c. For every $1.00 in total assets, you generated $12 in sales. d. For every $1.00 in average assets, you have $12 in total liabilities.
Garden Pro Corporation has sales of $4,953,171; income tax of $343,835; the selling, general and administrative expenses of $203,842; depreciation of $382,438; cost of goods sold of $2,453,450; and interest expense of $155,731. Calculate the firm’s net income?
Moby Dick Corporation has sales of $4,920,229; income tax of $574,192; the selling, general and administrative expenses of $265,391; depreciation of $374,888; cost of goods sold of $2,777,705; and interest expense of $195,023. Calculate the amount of the firm’s after-tax cash flow from operations?
Garden Pro Corporation has sales of $4,374,312; income tax of $562,963; the selling, general and administrative expenses of $291,061; depreciation of $399,602; cost of goods sold of $2,863,521; and interest expense of $105,428. Calculate the firm's net income?
A company has a gross profit margin of 45 %, cost of goods sold of $5 million, total debt of $5 million, and total equity of $5 million. What is its total asset turnover ratio?
Calculate the total asset turnover (sales / total assets) for the firm below. Sales 5000 COGS $1,200 Depreciation $800 Interest $500 Net Income $200 Total Assets 1400
Find the firm's asset turnover ratio & ROA.
Calculate the profit margin (net income / sales) for the firm below. Sales 1700 COGS $1,200 Depreciation $800 Interest $500 Net Income 900 Total Assets $5,000

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