In 2010, MegaStores reported net income of $3.8 billion, net sales of $109.8 billion, and average total assets of $61.0 billion.What is MegaStores' asset turnover ratio?

Question

Quizplus · Accepted Answer

The asset turnover ratio is calculated as net sales divided by average total assets. So, for MegaStores, the asset turnover ratio would be:
Asset Turnover Ratio = Net Sales/Average Total Assets 
= $109.8 billion/$61.0 billion 
= 1.80 times
Therefore, the correct answer is C) 1.80 times.

In 2010, MegaStores Reported Net Income of $3