The financial statements of Flathead Lake Manufacturing Company are given below: Note: The common shares are trading in the stock market for $15 per share
-Refer to the financial statements of Flathead Lake Manufacturing Company.The firm's ATO for 2007 is _________.Please keep in mind that when a ratio involves both income statement and balance sheet numbers,the balance sheet numbers for the beginning and end of the year must be averaged.
A) 3.56
B) 3.26
C) 3.14
D) 3.02

Question

The financial statements of Flathead Lake Manufacturing Company are given below:  Note: The common shares are trading in the stock market for $15 per share
-Refer to the financial statements of Flathead Lake Manufacturing Company.The firm's ATO for 2007 is _________.Please keep in mind that when a ratio involves both income statement and balance sheet numbers,the balance sheet numbers for the beginning and end of the year must be averaged.
A) 3.56 
B) 3.26 
C) 3.14 
D) 3.02

Quizplus · Accepted Answer

The Asset Turnover (ATO) ratio is calculated by dividing the net sales by the average total assets. To find the average total assets, you take the sum of the beginning and ending total assets for the year and divide by two. The correct calculation based on the provided options results in an ATO of 3.26.

The Financial Statements of Flathead Lake Manufacturing Company Are Given