The following information is provided for Nguyen Company and Northwest Corporation. $\begin{array}{lll}\text { (in } \$ \text { millions) }&\text { Nguven Company }&\text { Northwest Corporation }\
\text { Net income } 2017 & \$ 165 & \$ 420 \
\text { Net sales } 2017 & 1,650 & 4,900 \
\text { Total assets } 12 / 31 / 15 & 1,000 & 2,400 \
\text { Total assets } 12 / 31 / 16 & 1,050 & 3,000 \
\text { Total assets } 12 / 31 / 17 & 1,150 & 4,000
\end{array}$ What is Northwest's asset turnover for 2017?
A)1.40 times
B)1.63 times
C)1.81 times
D)1.23 times

Question

Quizplus · Accepted Answer

Asset turnover is calculated as Net Sales divided by Average Total Assets. For Northwest Corporation, the average total assets for 2017 is $(3,000 + 4,000) / 2 = 3,500$. The asset turnover is $4,900 / 3,500 = 1.40$ times.

The Following Information Is Provided for Nguyen Company and Northwest