Use the following information to answer questions 28 and 29.
Kestal Ltd reported sales of $500 000 for the year ending 31 December. The net profit before interest and tax was $120 000, and the net profit after tax was $90 000. The average of total assets was
$1 000 000. The average shareholders' equity was $700 000.
-What is the asset turnover for the year ending 31 December?
A) 2
B) 0.5
C) 0.7
D) 11.11

Question

Quizplus · Accepted Answer

Asset turnover is calculated as Sales divided by Average Total Assets. Therefore, $500,000 / $1,000,000 = 0.5.

Use the Following Information to Answer Questions 28 and 29