Dahn Corporation has provided the following financial data: Dividends on common stock during Year 2 totaled $1,600.The market price of common stock at the end of Year 2 was $2.37 per share. The company's total asset turnover for Year 2 is closest to:

Question

Dahn Corporation has provided the following financial data:   Dividends on common stock during Year 2 totaled $1,600.The market price of common stock at the end of Year 2 was $2.37 per share. The company's total asset turnover for Year 2 is closest to:

Quizplus · Accepted Answer

Total asset turnover = Sales ÷ Average total assets*
= $1,370,000 ÷ $1,346,500 = 1.02 (rounded)
*Average total assets = ($1,363,000 + $1,330,000)÷ 2 = $1,346,500

Dahn Corporation Has Provided the Following Financial Data