In 2010 K-Pac Company had net revenues, average total assets and net income of $90,000, $12,000 and $50,000 respectively.K-Pac's activity ratio for 2010 was

Name: In 2010 K-Pac Company had net revenues, average total assets and net income of $90,000, $12,000 and $50,000 respectively.K-Pac's activity ratio for 2010 was
Brand: Quizplus
Rating: 4.9 (38 reviews)

Question

Quizplus · Accepted Answer

The activity ratio, specifically the asset turnover ratio, is calculated as net revenues divided by average total assets. For K-Pac, this is $90,000 / $12,000 = 7.5.

In 2010 K-Pac Company Had Net Revenues, Average Total Assets