Question

If net sales is 110 and asset turnover is 1.1 what is the net income is:_______.a. 10b. 110c. .8d. Unable to tell from data given

Answer 1

The answer is D.

Step-by-step explanation:

Asset turnover ratio is:.

Net sales(revenue) / Total asset

Asset turnover = 1.1

Net sales = $110

Total assets = 110/1.1

= $100.

And we are looking for net income, from the given data, it is being seen that data given cannot be used to calculate net income i.e we are unable to tell from the available data in the question.