Nerf Mania reports net income of $500,000,net sales of $4,000,000,and average assets of $2,000,000.The asset turnover is:

Name: Nerf Mania reports net income of $500,000,net sales of $4,000,000,and average assets of $2,000,000.The asset turnover is:
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The asset turnover is calculated by dividing the net sales by the average assets.

Asset Turnover = Net Sales / Average Assets

Asset Turnover = $4,000,000 / $2,000,000

Asset Turnover = 2 times

Therefore, the correct answer is C) 2 times.

Nerf Mania Reports Net Income of $500,000,net Sales of $4,000,000,and