Mahoe Corporation has provided the following financial data: Dividends on common stock during Year 2 totaled $500.The market price of common stock at the end of Year 2 was $8.06 per share. The company's total asset turnover for Year 2 is closest to:

Question

Mahoe Corporation has provided the following financial data:   Dividends on common stock during Year 2 totaled $500.The market price of common stock at the end of Year 2 was $8.06 per share. The company's total asset turnover for Year 2 is closest to:

Quizplus · Accepted Answer

Total asset turnover = Sales ÷ Average total assets*
= $1,330,000 ÷ $1,652,500 = 0.80 (rounded)
*Average total assets = ($1,675,000 + $1,630,000)÷ 2 = $1,652,500

Mahoe Corporation Has Provided the Following Financial Data