Questions
MSB-250-300-002 Topic 3 Quiz
Single choice
eBuy Corporation Balance Sheet and Income Statement eBuy Corporation Balance Sheet (in $ Millions) Assets 20x0 20x2 Current assets Cash 213 281 Accounts receivable 457 461 Inventory 665 554 Total 1,335 1,296 Fixed assets PP&E 5,151 6,454 Accumulated debt 936 1,300 Net PP&E 4,215 5,154 Liabilities 20x0 20x1 Current liabilities Accounts payable 385 445 Notes payable 201 201 Total 586 646 Long-term debt 2,998 3,015 Common stock 1,004 1,673 Retained earnings 962 1,116 Liability and Equity 5,550 6,450 eBuy Corporation Income Statement eBuy Corporation 20x1 Income Statement (in $ Millions) Sales 2,877 Cost of goods sold 1,012 Operating expense 821 Depreciation 364 Earnings before interest and taxes 680 Interest expense 320 Earnings before taxes 360 Taxes 140 Net income 220 What is eBuy’s total asset turnover in 20x1?
Options
A.0.45
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Step-by-Step Analysis
We start by identifying what the question is asking: the total asset turnover for eBuy in 20x1.
First, recall the formula for total asset turnover: Asset Turnover = Sales / Total Assets.
Next, extract the relevant figures from the 20x1 column of the Balance Sheet: Sales for 20x1 are 2,877 (in $ Mi......Login to view full explanationLog in for full answers
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