Nerf Mania reports net income of $500,000,net sales of $4,000,000,and average assets of $2,000,000.The asset turnover is:
A)0.25 times.
B)0.5 times.
C)2 times.

Name: Nerf Mania reports net income of $500,000,net sales of $4,000,000,and average assets of $2,000,000.The asset turnover is: A)0.25 times. B)0.5 times. C)2 times.
Brand: Quizplus
Rating: 5.0 (41 reviews)

Question

Quizplus · Accepted Answer

Asset turnover ratio = Net Sales / Average Total Assets
= $4,000,000 / $2,000,000
= 2 times

Therefore, the best choice is C, with an explanation as shown above.

Nerf Mania Reports Net Income of $500,000,net Sales of $4,000,000,and