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MARNI COMPANY Balance Sheet As of December 31 ASSETS Cash $ 50,000 Accounts receivable 100,000 Inventory 200,000 Net plant and equipment 650,000 Total assets $
MARNI COMPANY | |||
Balance Sheet | |||
As of December 31 | |||
ASSETS | |||
Cash | $ | 50,000 | |
Accounts receivable | 100,000 | ||
Inventory | 200,000 | ||
Net plant and equipment | 650,000 | ||
Total assets | $ | 1,000,000 | |
LIABILITIES AND STOCKHOLDERS EQUITY | |||
Accounts payable | $ | 100,000 | |
Accrued expenses | 90,000 | ||
Long-term debt | 250,000 | ||
Common stock | 100,000 | ||
Paid-in capital | 50,000 | ||
Retained earnings | 410,000 | ||
Total liabilities and stockholders equity | $ | 1,000,000 | |
MARNI COMPANY | |||
Income Statement | |||
For the year ended December 31 | |||
Sales (all on credit) | $ | 2,000,000 | |
Cost of goods sold | 1,750,000 | ||
Gross profit | $ | 250,000 | |
Sales and administrative expenses | 30,000 | ||
Fixed lease expenses | 10,000 | ||
Depreciation | 60,000 | ||
Operating profit | $ | 150,000 | |
Interest expense | 25,000 | ||
Profit before taxes | $ | 125,000 | |
Taxes (40%) | 50,000 | ||
Net income | $ | 75,000 | |
Refer to the tables above. What is Marni's total asset turnover?
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