46 The entity provides the following information in year 2020: Net sales Cost of goods sold Current assets Current liabilities Average total assets Total liabilities Net income Instructions: Type the numerical answer 1, 2, 3. or 4 in the box after the question. A. The asset turnover ratio is Blank 1 1)0.50 850,000 500,000 500,000 250,000 1,000,000 550,000 150,000 3 Points 2) 0.85 3) 1.18 4) 0.15 B. Compute the gross profit margin. If the industry average is 40%, interpret the entity's profit margin compared to industry average. Blank 2 1) 43%; better 2) 18%; worse 3)59%; better 4)41%; better C. Compute the profit margin. If the industry average is 25%, interpret the entity's profit margin compared to industry average. Blank 3 1)43%; better 2) 18%; worse 3)59%; better 4)41%; better The following information are available on December 31, 2020: Cash 300,000 Account receivable 160,000 Inventories 150,000 Prepaid rent 48,000 Property, plant, and equipment, net 900,000 Accounts payable 300,000 160,000 400,000 Notes payable, due in nine months Loan payable, due in 2025 Service income Operating expense Instructions: Type the numerical answer 1, 2, 3. or 4 in the box after the question. A. At what amount shall the total assets be reported in balance sheet? Blank 1 1) 1,558,000 2) 658,000 3) 860,000 4) 420,000 B. At what amount shall the total liabilities be reported in balance sheet? Blank 2 1) 1,558,000 2) 658,000 3) 860,000 4) 420,000 1,000,000 580,000