Mulholland Company had total assets of $700,000 at the beginning of the year and at the end of the year, its total assets were $800,000. Mulholland's net sales for the year were $800,000 and its net income was $60,000.
Mulholland's asset turnover for the year is:

Question

Quizplus · Accepted Answer

Asset turnover = Net sales / Average total assetsAverage total assets = (Beginning total assets + Ending total assets) / 2= ($700,000 + $800,000) / 2= $750,000Asset turnover = $800,000 / $750,000= 1.07

Mulholland Company Had Total Assets of $700,000 at the Beginning