Answer the following question(s)using the information below:
Miller Medical Services provided the following information for it past year's operations in its Hospital Bed Division.
-What is the Hospital Bed Division's asset turnover?
A)0.00
B)0.53
C)0.92
D)1.33
E)2.50

Question

Answer the following question(s)using the information below:
Miller Medical Services provided the following information for it past year's operations in its Hospital Bed Division. 
-What is the Hospital Bed Division's asset turnover?
A)0.00 
B)0.53 
C)0.92 
D)1.33 
E)2.50

Quizplus · Accepted Answer

Asset Turnover = (Total Revenue) / (Average Total Assets)
From the given information in the table, we can calculate the asset turnover as follows:
Asset Turnover = 42,120,000 / ((20,000,000 + 32,000,000) / 2) = 1.33
Therefore, the Hospital Bed Division's asset turnover is 1.33.

Answer the Following Question(s)using the Information Below