Illusions, Inc. has net sales of $950,000, net income of $71,000, average current assets of $42,000 average fixed assets of $164,000, and average total assets of $208,000. Illusions, Inc.'s total asset turnover ratio is: (Round your final answer to two decimal places.)
A)0.22.
B)4.57.
C)5.79.
D)13.38.

Question

Quizplus · Accepted Answer

The total asset turnover ratio is calculated by dividing net sales by average total assets. For Illusions, Inc., this is $950,000 / $208,000 = 4.57.