The financial statements of Midwest Tours are given below. Note: The common shares are trading in the stock market for $36 each.
Refer to the financial statements of Midwest Tours.The firm's asset turnover ratio for 2009 is
A)1.86.
B)0.63.
C)0.83.
D)1.63.

Question

The financial statements of Midwest Tours are given below.   Note: The common shares are trading in the stock market for $36 each.
Refer to the financial statements of Midwest Tours.The firm's asset turnover ratio for 2009 is
A)1.86. 
B)0.63. 
C)0.83. 
D)1.63.

Quizplus · Accepted Answer

The asset turnover ratio is calculated by dividing the total revenue by the total assets. In 2009, Midwest Tours had total revenue of $264,000 and total assets of $318,000, so the asset turnover ratio is 264,000/318,000 = 0.83.

The Financial Statements of Midwest Tours Are Given Below