Redribbon Gallery reported the following assets on its December 31,2017 balance sheet:
$\begin{array}{lll}
&\text { Dec. } 31,2017 &\text { Dec, } 31,2016\
\text { Cash } & \$ 35,000 & \$ 28,000 \
\text { Accounts Receivable } & 97,000 & 85,000 \
\text { Merchandise Inventory } & 80,000 & 62,000 \
\text { Prepaid Expenses } & 29,000 & 20,000 \
\text { Property, plant, and equipment, net } & 30,000 & 18,000
\end{array}$
If the net sales for the year amounted to $850,000,what is the asset turnover ratio for 2017?

Question

Redribbon Gallery reported the following assets on its December 31,2017 balance sheet:
 $\begin{array}{lll}
&\text { Dec. } 31,2017 &\text { Dec, } 31,2016\
\text { Cash } & \$ 35,000 & \$ 28,000 \
\text { Accounts Receivable } & 97,000 & 85,000 \
\text { Merchandise Inventory } & 80,000 & 62,000 \
\text { Prepaid Expenses } & 29,000 & 20,000 \
\text { Property, plant, and equipment, net } & 30,000 & 18,000
\end{array}$
 If the net sales for the year amounted to $850,000,what is the asset turnover ratio for 2017?

Quizplus · Accepted Answer

The Answer of Redribbon Gallery reported the following assets on its December 31,2017 balance sheet:
 $\begin{array}{lll}
&\text { Dec. } 31,2017 &\text { Dec, } 31,2016\
\text { Cash } & \$ 35,000 & \$ 28,000 \
\text { Accounts Receivable } & 97,000 & 85,000 \
\text { Merchandise Inventory } & 80,000 & 62,000 \
\text { Prepaid Expenses } & 29,000 & 20,000 \
\text { Property, plant, and equipment, net } & 30,000 & 18,000
\end{array}$
 If the net sales for the year amounted to $850,000,what is the asset turnover ratio for 2017?

Redribbon Gallery Reported the Following Assets on Its December 31,2017