The financial statements of Burnaby Mountain Trading Company are given below. Note: The common shares are trading in the stock market for $27 each.
-Refer to the financial statements of Burnaby Mountain Trading Company.The firm's asset turnover ratio for 2008 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) 1.30
B) 1.50
C) 1.69
D) 2.83

Question

The financial statements of Burnaby Mountain Trading Company are given below.  Note: The common shares are trading in the stock market for $27 each.
-Refer to the financial statements of Burnaby Mountain Trading Company.The firm's asset turnover ratio for 2008 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) 1.30 
B) 1.50 
C) 1.69 
D) 2.83

Quizplus · Accepted Answer

The asset turnover ratio is calculated by dividing net sales by the average total assets. The average total assets are calculated by taking the sum of the beginning and ending total assets for the year and dividing by two. The correct calculation leads to a ratio of 1.69.

The Financial Statements of Burnaby Mountain Trading Company Are Given