Secular Electric has total equity of $560,000; sales of $2,250,000; current assets of $700,000; and total liabilities of $435,000.What is Secular Electric's total asset turnover?

Question

Quizplus · Accepted Answer

Total Asset Turnover = Sales / Total Assets

Total Assets = Total Equity + Total Liabilities 
Total Assets = $560,000 + $435,000 = $995,000

Total Asset Turnover = $2,250,000 / $995,000 = 2.26

Secular Electric Has Total Equity of $560,000; Sales of $2,250,000;