Maple Corp. had net sales of $204,550 for the year ended December 31, 2017. Its beginning and ending total assets were $83,200 and $116,500, respectively. Determine Maple's asset turnover ratio for the year ended December 31, 2017. (Round your answer to two decimal places.)

Question

Quizplus · Accepted Answer

Asset turnover ratio = Net sales / Average total assets
Average total assets = (Beginning total assets + Ending total assets) / 2
Average total assets = ($83,200 + $116,500) / 2 = $99,850

Asset turnover ratio = $204,550 / $99,850 = 2.05 times (rounded to two decimal places)

Therefore, the best choice is D.