Last year's asset turnover ratio was 2.0. Sales have increased by 25% and average total assets have increased by 10% since that time. What is the current asset turnover ratio?
A) 1.82
B) 2.05
C) 2.15
D)2.27

Name: Last year's asset turnover ratio was 2.0. Sales have increased by 25% and average total assets have increased by 10% since that time. What is the current asset turnover ratio? A) 1.82 B) 2.05 C) 2.15 D)2.27
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Question

Quizplus · Accepted Answer

Asset turnover = sales/average total assets = 22 × 1.25/1.1 = 2.27

Last Year's Asset Turnover Ratio Was 2