Asked by chisom chikezie on Apr 28, 2024
Verified
The company's total asset turnover for Year 2 is closest to:
A) 5.29
B) 0.19
C) 1.04
D) 0.96
Total Asset Turnover
A financial ratio that measures a company's ability to generate sales from its assets by comparing sales to total assets.
- Calculate and analyze the company's total asset turnover.
Verified Answer
ZK
Zybrea KnightMay 02, 2024
Final Answer :
D
Explanation :
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
Reference: CH14-Ref10
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.
= $1,290,000 ÷ $1,340,000 = 0.96 (rounded)
*Average total assets = ($1,350,000 + $1,330,000)÷ 2 = $1,340,000
Reference: CH14-Ref10
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.
Learning Objectives
- Calculate and analyze the company's total asset turnover.
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