Western Wear has net working capital of $5,200,net fixed assets of $128,000,sales of $114,000,and current liabilities of $9,800.From each $1 in total assets,the firm generates sales of
A)$1.25
B)$1.52
C)$0.80
D)$0.66
E)$1.29

Question

Quizplus · Accepted Answer

Total asset turnover = $114,000 / ($5,200 + $9,800 + $128,000)= 0.80 times Every $1 in total assets generates $0.80 in sales.

Western Wear Has Net Working Capital of $5,200,net Fixed Assets