Use the following information for questions 111 and 112:
For 2014, Hammer Company reports beginning of the year total assets of $900,000, end of the year total assets of $1,100,000, net sales of $750,000, and net income of $150,000.
-Hammer's 2014 asset turnover ratio is

Question

Quizplus · Accepted Answer

The asset turnover ratio is calculated as net sales divided by average total assets. Average total assets = (Beginning Total Assets + Ending Total Assets) / 2 = ($900,000 + $1,100,000) / 2 = $1,000,000. Asset turnover ratio = Net Sales / Average Total Assets = $750,000 / $1,000,000 = 0.75 times.

Use the Following Information for Questions 111 and 112