Use the information below to answer the following question(s):
Selected financial data for the Entertainment Division of Magic Enterprises is as follows:

-What is the Entertainment Division's asset turnover?
A) 9.0
B) 5.0
C) 2.4
D) 2.1

Question

Use the information below to answer the following question(s):
Selected financial data for the Entertainment Division of Magic Enterprises is as follows:
 
-What is the Entertainment Division's asset turnover?
A) 9.0 
B) 5.0 
C) 2.4 
D) 2.1

Quizplus · Accepted Answer

Asset turnover is calculated by dividing total sales by total assets. 
Asset turnover = $180,000 ÷ $75,000 = 2.4. 
Therefore, the Entertainment Division's asset turnover is 2.4.

Use the Information Below to Answer the Following Question(s)