Baker,Inc.had reported the following details for the year ended December 31,2017:

The company's beginning total assets and liabilities were $16,000,000 and $9,700,000,respectively.Calculate the asset turnover ratio for 2017.

Question

Baker,Inc.had reported the following details for the year ended December 31,2017:

The company's beginning total assets and liabilities were $16,000,000 and $9,700,000,respectively.Calculate the asset turnover ratio for 2017.

Quizplus · Accepted Answer

D)Asset turnover ratio = Net sales / Average total assets
Net sales = $25,750,000
Average total assets = ($16,000,000 + $17,000,000)/ 2 = $16,500,000
Asset turnover ratio = $25,750,000 / $16,500,000 = 1.56

Baker,IncHad Reported the Following Details for the Year Ended December