Question
1. The Huntzicker Company reported gross sales of $850,000, sales returns and allowances of $5,000 and sales discounts of $5,000. The company has average total
1. The Huntzicker Company reported gross sales of $850,000, sales returns and allowances of $5,000 and sales discounts of $5,000. The company has average total assets of $500,000, of which $250,000 is property, plant, and equipment. What is the company's asset turnover ratio?
A. 1.8 times
B. 1.72 times
C. 0.59 times
D. 1.68 times
2.
You are considering an investment in Baker Corporation common stock and wish to assess the firm's ability to generate earnings. All of the following ratios are used to assess profitability and managerial effectiveness except:
A. | Net margin | |
B. | Asset turnover | |
C. | Return on investment | |
D. | Average number of days to collect receivables |
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