Parker Corporation had sales of $250,000,income of $10,000,and an asset base of $100,000.What is the turnover?

Question

Quizplus · Accepted Answer

Turnover ratio or Asset turnover ratio is calculated by dividing the sales by the total assets of a company.

Turnover ratio = Sales/Total assets

In this case, 
Sales = $250,000 
Total assets = $100,000 
So, 
Turnover ratio = $250,000/$100,000 = 2.50

Therefore, the best choice is C.

Parker Corporation Had Sales of $250,000,income of $10,000,and an Asset