Classic Winery had profit of $39,500,net sales of $285,000,and average total assets of $185,700.Its profit margin and total asset turnover were

Question

Quizplus · Accepted Answer

Profit margin = (Net profit ÷ Net sales) × 100%
Profit margin = ($39,500 ÷ $285,000) × 100%
Profit margin = 13.9%

Total asset turnover = Net sales ÷ Average total assets
Total asset turnover = $285,000 ÷ $185,700
Total asset turnover = 1.53

Therefore, the answer is B) 13.9%; 1.53

Classic Winery Had Profit of $39,500,net Sales of $285,000,and Average