Redribbon Gallery reported the following assets on its December 31, 2015 balance sheet:
$$\begin{array} { l c c }
\text { Cash } & \text { Dec. } 31,2015 & \text { Dec. 31, 2014 } \
\text { Accounts Receivable } & \$ 35,000 & \$ 28,000 \
\text { Merchandise Inventory } & 97,000 & 85,000 \
\text { Prepaid Expenses } & 80,000 & 6 2 , 0 0 0 \
\text { Property, plant, and equipment, net } & 29,000 & 20,000 \
\text { rent } & 3 0 , 0 0 0& 18,000
\end{array}$$ If the net sales for the year amounted to $850,000, what is the asset turnover ratio for 2015?

Question

Redribbon Gallery reported the following assets on its December 31, 2015 balance sheet:
 $$\begin{array} { l c c } 
\text { Cash } & \text { Dec. } 31,2015 & \text { Dec. 31, 2014 } \
\text { Accounts Receivable } & \$ 35,000 & \$ 28,000 \
\text { Merchandise Inventory } & 97,000 & 85,000 \
\text { Prepaid Expenses } & 80,000 & 6 2 , 0 0 0 \
\text { Property, plant, and equipment, net } & 29,000 & 20,000 \
\text { rent } &  3 0 , 0 0 0& 18,000
\end{array}$$ If the net sales for the year amounted to $850,000, what is the asset turnover ratio for 2015?

Quizplus · Accepted Answer

The Answer of Redribbon Gallery reported the following assets on its December 31, 2015 balance sheet:
 $$\begin{array} { l c c } 
\text { Cash } & \text { Dec. } 31,2015 & \text { Dec. 31, 2014 } \
\text { Accounts Receivable } & \$ 35,000 & \$ 28,000 \
\text { Merchandise Inventory } & 97,000 & 85,000 \
\text { Prepaid Expenses } & 80,000 & 6 2 , 0 0 0 \
\text { Property, plant, and equipment, net } & 29,000 & 20,000 \
\text { rent } &  3 0 , 0 0 0& 18,000
\end{array}$$ If the net sales for the year amounted to $850,000, what is the asset turnover ratio for 2015?

Redribbon Gallery Reported the Following Assets on Its December 31