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On January 1, 2017 Hilldale, Inc. had total assets of $366,000. During the year, the company purchased new machinery worth $84,000 and promised to pay
On January 1, 2017 Hilldale, Inc. had total assets of $366,000. During the year, the company purchased new machinery worth $84,000 and promised to pay the amount due after two years. Throughout the year, it earned revenue of $56,000 every month. Calculate the asset turnover ratio.
a) 1.49
b) 1.65
c)1.81
d)1.09
Correct answer was B. Can someone explain?
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