-Refer to Fireworks City. Determine the asset turnover ratio for 2013.
A)7.84 times
B)1.60 times
C)4.00 times
D)4.55 times

Name: -Refer to Fireworks City. Determine the asset turnover ratio for 2013. A)7.84 times B)1.60 times C)4.00 times D)4.55 times
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Question

-Refer to Fireworks City. Determine the asset turnover ratio for 2013.
A)7.84 times 
B)1.60 times 
C)4.00 times 
D)4.55 times

Quizplus · Accepted Answer

The asset turnover ratio is calculated by dividing net sales by average total assets. For 2013, net sales were $12,450,000 and average total assets were $1,587,500. Therefore, the asset turnover ratio for 2013 is $12,450,000 / $1,587,500 = 7.84 times.