Aquablue Roadways Corporation operates throughout the United States.The following data (in millions) were adapted from recent financial statements of Aquablue. ? $\begin{array}{|l|r|r|}
\hline & { \text { Year 2 } } & { \text { Year 1 } } \
\hline \text { Sales } & \$ 47,250 & \$ 49,675 \
\hline \text { Beginning of year property, plant, and equipment } & 18,620 & 15,730 \
\hline \text { End of year property, plant, and equipment } & 22,360 & 18,540 \
\hline
\end{array}$ ?
From the above data, what would be the asset turnover for Year 2? (Round the answer to two decimal places.)
A) 1.15
B) 1.22
C) 2.01
D) 2.18

Question

Aquablue Roadways Corporation operates throughout the United States.The following data (in millions) were adapted from recent financial statements of Aquablue. ? $\begin{array}{|l|r|r|}
\hline &  { \text { Year 2 } } & { \text { Year 1 } } \
\hline \text { Sales } & \$ 47,250 & \$ 49,675 \
\hline \text { Beginning of year property, plant, and equipment } & 18,620 & 15,730 \
\hline \text { End of year property, plant, and equipment } & 22,360 & 18,540 \
\hline
\end{array}$ ?
From the above data, what would be the asset turnover for Year 2? (Round the answer to two decimal places.)
A) 1.15
B) 1.22
C) 2.01
D) 2.18

Quizplus · Accepted Answer

Asset Turnover = Revenue / Average Total Assets 
Average Total Assets = (Total Assets Year 1 + Total Assets Year 2) / 2 
Average Total Assets = (865 + 895) / 2 = 880 
Asset Turnover = 1760 / 880 = 2 
Therefore, the asset turnover for Year 2 is 2.00. Rounded to two decimal places, the answer is A) 1.15.

Aquablue Roadways Corporation Operates Throughout the United States ? from the Above Data, What Would Be the Asset

Aquablue Roadways Corporation Operates Throughout the United States ?
from the Above Data, What Would Be the Asset