A Total Asset Turnover Ratio of 3

Multiple Choice

A total asset turnover ratio of 3.5 indicates that

A) For every $1 in sales,the firm acquired $3.50 in assets during the year
B) For every $1 in assets,the firm produced $3.50 in net sales during the year
C) For every $1 in assets,the firm earned gross profit of $3.50 during the year
D) For every $1 in assets,the firm earned $3.50 in earnings per share
E) For every $1 in assets,the firm paid $3.50 in dividends per share