The asset turnover from the following is (round to nearest tenth): $$\begin{array} { | l | r | }
\hline \text { Gross sales } & \$ 70,000 \
\hline \text { Sales discount } & \$ 2,500 \
\hline \text { Sales returns and allowances } & \$ 8,000 \
\hline \text { Total assets } & \$ 39,000 \
\hline
\end{array}$$
A)1.7
B)1.5
C)1.9
D)1.6
E)None of these

Question

The asset turnover from the following is (round to nearest tenth): $$\begin{array} { | l | r | } 
\hline \text { Gross sales } & \$ 70,000 \
\hline \text { Sales discount } & \$ 2,500 \
\hline \text { Sales returns and allowances } & \$ 8,000 \
\hline \text { Total assets } & \$ 39,000 \
\hline
\end{array}$$
A)1.7
B)1.5
C)1.9
D)1.6
E)None of these

Quizplus · Accepted Answer

Net sales are calculated as gross sales minus sales discounts and sales returns and allowances: $70,000 - $2,500 - $8,000 = $59,500. Asset turnover is net sales divided by total assets: $59,500 / $39,000 = 1.53, rounded to 1.5.

The Asset Turnover from the Following Is (Round to Nearest