1- On 1/1/24 SMJ Inc had total assets of $363,000. During the year the company purchased new machinery worth $82,000 and promised to pay the amount due in two years. Throughout the year, SMJ earned revenue of $54,000 every month. Calculate the asset turnover ratio.

a.1.82 times

b. 1.46 times

c.1.6 times

d.1.1 times

2- A coal mine cost $1,010,000 and is estimated to hold 60,000 tons of coal. There is no residual value. During the first year of operations, 10,000 tons of coal are extracted and sold. Calculate depletion expense for the first year.

a.188,100

b. 168,333

c.151,350

d.201,800