Asked by Aparna Narayanan on Apr 28, 2024
Verified
The company's total asset turnover for Year 2 is closest to:
A) 1.17
B) 11.04
C) 0.09
D) 0.85
Total Asset Turnover
A financial ratio that measures a company's ability to generate sales from its assets by comparing net sales with average total assets.
Year 2
Typically refers to the second year of a particular time frame, such as a business plan, financial projections, or an academic calendar.
- Evaluate the company's total asset turnover to understand asset efficiency.
Verified Answer
JG
Jazmín GómesMay 01, 2024
Final Answer :
A
Explanation :
Total asset turnover = Sales ÷ Average total assets*
= $1,450,000 ÷ $1,243,000 = 1.17 (rounded)
*Average total assets = ($1,236,000 + $1,250,000)÷ 2 = $1,243,000
Reference: CH14-Ref12
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.
= $1,450,000 ÷ $1,243,000 = 1.17 (rounded)
*Average total assets = ($1,236,000 + $1,250,000)÷ 2 = $1,243,000
Reference: CH14-Ref12
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.
Learning Objectives
- Evaluate the company's total asset turnover to understand asset efficiency.