Two Sisters Dresses has net working capital of $43,800,net fixed assets of $232,400,net income of $43,900,and current liabilities of $51,300.The tax rate is 21 percent and the profit margin is 9.3 percent.How many dollars of sales are generated from every $1 in total assets?
A)$1.44
B)$1.32
C)$1.73
D)$.97
E)$1.06

Question

Quizplus · Accepted Answer

Sales = Net income / Profit margin= 43,900 / 0.093= $472,043Total assets = Net working capital + Net fixed assets= 43,800 + 232,400= $276,200Sales per dollar of total assets = Sales / Total assets= 472,043 / 276,200= $1.71

Two Sisters Dresses Has Net Working Capital of $43,800,net Fixed