Barker,Inc.had reported the following details for the year ended December 31,2019: The company's beginning total assets and liabilities were $14,300,000 and $9,100,000,respectively.Calculate the asset turnover ratio for 2019.(Round your answer to two decimal places. )

Question

Barker,Inc.had reported the following details for the year ended December 31,2019:  The company's beginning total assets and liabilities were $14,300,000 and $9,100,000,respectively.Calculate the asset turnover ratio for 2019.(Round your answer to two decimal places. )

Quizplus · Accepted Answer

Asset turnover ratio = Net sales / Average total assets
Net sales = $24,950,000
Average total assets = ($14,300,000 + $16,900,000)/ 2 = $15,600,000
Asset turnover ratio = $24,950,000 / $15,600,000 = 1.60