Deflorio Corporation's inventory at the end of Year 2 was $156,000 and its inventory at the end of Year 1 was $140,000. The company's total assets at the end of Year 2 were $1,416,000 and its total assets at the end of Year 1 were $1,390,000. Sales amounted to $1,320,000 in Year 2. The company's total asset turnover for Year 2 is closest to:
A) 0.94
B) 1.06
C) 5.38
D) 0.19

Question

Quizplus · Accepted Answer

Total asset turnover = Sales / Average total assetsAverage total assets = (Beginning total assets + Ending total assets) / 2= ($1,390,000 + $1,416,000) / 2= $1,403,000Total asset turnover = $1,320,000 / $1,403,000= 0.94

Deflorio Corporation's Inventory at the End of Year 2 Was