Asset management ratios

Asset management ratios are used to measure how effectively a firm manages its assets, by relating the amount a firm has invested in a particular type of asset $($or group of assets$)$ to the amount of revenues the asset is generating. Examples of asset management ratios include the average collection period $($also called the days sales outstanding ratio$),$ the inventory turnover ratio, the fixed asset turnover ratio, and the total asset turnover ratio.

Consider the following case:

Monroe Manufacturing has a quick ratio of $2\mathrm{.}00x,$$$34,875$ in cash, $$19,375$ in accounts receivable, some inventory, total current assets of $$77,500,$ and total current liabilities of $$27,125.$ The company reported annual sales of $$800,000$ in the most recent annual report. Additionally, the company's cost of goods sold is $75\%$ of sales.

Over the past year, how often did Monroe Manufacturing sell and replace its inventory?

$28\mathrm{.}39x$

$2\mathrm{.}86x$

$8\mathrm{.}01x$

$25\mathrm{.}81x$