Western Wear has net working capital of $3,500,net fixed assets of $42,000,sales of $69,000,and current liabilities of $9,800.From each $1 in total assets,the firm generates sales of:
A)$1.43
B)$1.52
C)$1.25
D)$1.64
E)$1.39

Question

Quizplus · Accepted Answer

Total asset turnover = $69,000/($3,500 + 9,800 + 42,000)= 1.25 timesEvery $1 in total assets generates $1.25 in sales.

Western Wear Has Net Working Capital of $3,500,net Fixed Assets