Parker Corporation had sales of $250,000, income of $10,000, and an asset base of $100,000.The turnover is

Name: Parker Corporation had sales of $250,000, income of $10,000, and an asset base of $100,000.The turnover is
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Question

Quizplus · Accepted Answer

Turnover ratio is calculated by dividing sales by the average total assets. 
Turnover ratio = Sales / Total Assets 
Therefore, Parker Corporation's turnover ratio would be:
Turnover ratio = $250,000 / $100,000 = 2.50. 
Hence, the answer is choice B, which is 2.50.

Parker Corporation Had Sales of $250,000, Income of $10,000, and an Asset