For 2020, Walrus Company reported net revenues, average total assets, and net income of $180,000, $24,000, and $100,000 respectively. Walrus Company's asset turnover ratio for 2020 was
A) 1.8.
B) 3.8.
C) 7.5.
D) 8.0.

Question

Quizplus · Accepted Answer

The asset turnover ratio is calculated by dividing net revenues by average total assets. For Walrus Company, this is $180,000 / $24,000 = 7.5.

For 2020, Walrus Company Reported Net Revenues, Average Total Assets