Compute the asset turnover ratio for the current year.
A) 0.50
B) 1.51
C) 1.80
D) 2.00

Name: Compute the asset turnover ratio for the current year. A) 0.50 B) 1.51 C) 1.80 D) 2.00
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Question

Quizplus · Accepted Answer

The asset turnover ratio is calculated by dividing revenue by average total assets. Based on the information given in the question, the revenue for the current year is $603,000 and the average total assets are $400,000. Therefore, the asset turnover ratio is 1.51 ($603,000/$400,000).

Compute the Asset Turnover Ratio for the Current Year