Rubber Soul Company reported the following data: $\begin{array}{lrr}&2007&2008\\hline
\text { Sales } & \$ 2,000,000 & \$ 2,600,000 \
\text { Net Income } & 300,000 & 400,000 \
\text { Assets at year end } & 1,800,000 & 2,500,000 \
\text { Liabilities at year end } & 1,100,000 & 1,500,000
\end{array}$
What is Rubber Soul's asset turnover for 2008?

Question

Rubber Soul Company reported the following data: $\begin{array}{lrr}&2007&2008\\hline
\text { Sales } & \$ 2,000,000 & \$ 2,600,000 \
\text { Net Income } & 300,000 & 400,000 \
\text { Assets at year end } & 1,800,000 & 2,500,000 \
\text { Liabilities at year end } & 1,100,000 & 1,500,000
\end{array}$ 
What is Rubber Soul's asset turnover for 2008?

Quizplus · Accepted Answer

Asset turnover = Sales / Average total assetsAverage total assets = (Assets at year end 2007 + Assets at year end 2008) / 2= (1,800,000 + 2,500,000) / 2= 2,150,000Asset turnover = 2,600,000 / 2,150,000= 1.21

Rubber Soul Company Reported the Following Data What Is Rubber Soul's Asset Turnover for 2008? A)1

Rubber Soul Company Reported the Following Data What Is Rubber Soul's Asset Turnover for 2008?
A)1