Selected current year company information follows: $$\begin{array} { l | r }
\text { Net income } & \$ 15,953 \
\hline \text { Net sales } & 712,855 \
\hline \text { Total liabilities, beginning-year } & 83,932 \
\hline \text { Total liabilities, end-of-year } & 103,201 \
\hline \text { Total stockholders' equity, beginning-year .... } & 198,935 \
\hline \text { Total stockholders' equity, end-of-year } & 121,851
\end{array}$$ The total asset turnover is:
A) 2.81 times
B) 6.28 times
C) 3.64 times
D) 2.24 times
E) 4.67 times

Question

Selected current year company information follows: $$\begin{array} { l | r } 
\text { Net income } & \$ 15,953 \
\hline \text { Net sales } & 712,855 \
\hline \text { Total liabilities, beginning-year } & 83,932 \
\hline \text { Total liabilities, end-of-year } & 103,201 \
\hline \text { Total stockholders' equity, beginning-year .... } & 198,935 \
\hline \text { Total stockholders' equity, end-of-year } & 121,851
\end{array}$$ The total asset turnover is:
A) 2.81 times
B) 6.28 times
C) 3.64 times
D) 2.24 times
E) 4.67 times

Quizplus · Accepted Answer

Total asset turnover = Net sales / Average total assetsAverage total assets = (Beginning total assets + Ending total assets) / 2Beginning total assets = Total liabilities, beginning-year + Total stockholders' equity, beginning-year= 83,932 + 198,935= 282,867Ending total assets = Total liabilities, end-of-year + Total stockholders' equity, end-of-year= 103,201 + 121,851= 225,052Average total assets = (282,867 + 225,052) / 2= 253,960Total asset turnover = 712,855 / 253,960= 2.81 times

Selected Current Year Company Information Follows The Total Asset Turnover Is: A) 2

Selected Current Year Company Information Follows The Total Asset Turnover Is:
A) 2