Question
Burdick Corporation has provided the following financial data from its balance sheet: Year 2 Year 1 Accounts receivable $266,000 $250,000 Inventory $162,000 $190,000 Total assets
Burdick Corporation has provided the following financial data from its balance sheet:
| Year 2 | Year 1 | |
| Accounts receivable | $266,000 | $250,000 |
| Inventory | $162,000 | $190,000 |
| Total assets | $1,415,000 | $1,390,000 |
| Total stockholders' equity | $991,000 | $970,000 |
Sales (all on account) in Year 2 amounted to $1,410,000 and the cost of goods sold was $860,000. The company's total asset turnover for Year 2 is closest to:
| 0.19 | ||
| 1.01 | ||
| 0.99 | ||
| 5.32 |
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Advanced Accounting
Authors: Joe Hoyle, Thomas Schaefer, Timothy Doupnik
10th edition
0-07-794127-6, 978-0-07-79412, 978-0077431808
