Dahn Corporation has provided the following financial data:
Dividends on common stock during Year 2 totaled $1,600. The market price of common stock at the end of Year 2 was $2.37 per share.
-The company's total asset turnover for Year 2 is closest to:
A) 10.17
B) 0.10
C) 1.02
D) 0.98

Question

Dahn Corporation has provided the following financial data:
   Dividends on common stock during Year 2 totaled $1,600. The market price of common stock at the end of Year 2 was $2.37 per share.
-The company's total asset turnover for Year 2 is closest to:
A) 10.17 
B) 0.10 
C) 1.02 
D) 0.98

Quizplus · Accepted Answer

Total asset turnover = Sales ÷ Average total assets*
= $1,370,000 ÷ $1,346,500 = 1.02 (rounded)
*Average total assets = ($1,363,000 + $1,330,000) ÷ 2 = $1,346,500

Dahn Corporation Has Provided the Following Financial Data