Richard's Sporting Goods reports net income of $100,000,net sales of $500,000,and average assets of $1,000,000.The asset turnover is:
A)0.1 times.
B)0.5 times.
C)2 times.
D)5 times.

Name: Richard's Sporting Goods reports net income of $100,000,net sales of $500,000,and average assets of $1,000,000.The asset turnover is: A)0.1 times. B)0.5 times. C)2 times. D)5 times.
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Question

Quizplus · Accepted Answer

Asset turnover is calculated as net sales divided by average assets. Here, $500,000 / $1,000,000 = 0.5 times.

Richard's Sporting Goods Reports Net Income of $100,000,net Sales of $500,000,and