The following information is provided for Nguyen Company and Northwest Corporation. $\begin{array}{lll}\text { (in } \$ \text { millions) }&\text { Nguven Company }&\text { Northwest Corporation }\
\text { Net income } 2017 & \$ 165 & \$ 420 \
\text { Net sales } 2017 & 1,650 & 4,900 \
\text { Total assets } 12 / 31 / 15 & 1,000 & 2,400 \
\text { Total assets } 12 / 31 / 16 & 1,050 & 3,000 \
\text { Total assets } 12 / 31 / 17 & 1,150 & 4,000
\end{array}$ What is Nguyen's asset turnover for 2017?
A)4.00 times
B)1.50 times
C)0.25 times
D)0.67 times

Question

Quizplus · Accepted Answer

Asset turnover is calculated as Net Sales divided by Average Total Assets. For Nguyen Company, Average Total Assets for 2017 = (1,050 + 1,150) / 2 = 1,100. Asset Turnover = 1,650 / 1,100 = 1.50 times.

The Following Information Is Provided for Nguyen Company and Northwest