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Information for Year 2 and Year 1 is presented below for SPKY, which uses the straight-line depreciation method. Year 2 Year 1 Property, plant, and

Information for Year 2 and Year 1 is presented below for SPKY, which uses the straight-line depreciation method.

Year 2

Year 1

Property, plant, and equipment

$250,000

$190,000

Accumulated depreciation

100,000

85,000

Depreciation expense

62,500

47,500

Net sales

1,000,000

900,000

Total assets

625,000

475,000

What is the asset turnover ratio for Year 2?

1.6 times

4 times

4.55 times

7.84 times

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