Ribaudo Corporation has provided the following financial data from its balance sheet and income statement: The company's total asset turnover for Year 2 is closest to:

Question

Ribaudo Corporation has provided the following financial data from its balance sheet and income statement:  The company's total asset turnover for Year 2 is closest to:

Quizplus · Accepted Answer

Total asset turnover = Sales ÷ Average total assets*
= $1,290,000 ÷ $1,340,000 = 0.96 (rounded)
*Average total assets = ($1,350,000 + $1,330,000)÷ 2 = $1,340,000

Ribaudo Corporation Has Provided the Following Financial Data from Its