TEW COMPANY
Balance Sheet
As of December 31
ASSETS
Cash	$	20,000
Accounts receivable		80,000
Inventory		50,000
Net plant and equipment		250,000
Total assets	$	400,000
LIABILITIES AND STOCKHOLDERS EQUITY
Accounts payable	$	40,000
Accrued expenses		60,000
Long-term debt		130,000
Common stock		100,000
Paid-in capital		10,000
Retained earnings		60,000
Total liabilities and stockholders equity	$	400,000

TEW COMPANY
Income Statement
For the year ended December 31
Sales (all on credit)	$	500,000
Cost of goods sold		200,000
Gross profit	$	300,000
Sales and administrative expenses		20,000
Fixed lease expenses		10,000
Depreciation		40,000
Operating profit	$	230,000
Interest expense		20,000
Profit before taxes	$	210,000
Taxes (35%)		73,500
Net income	$	136,500

Refer to the tables above. What is Tew's total asset turnover?

Multiple Choice

• 2.9x

• 1.3x

• 0.63x

• 1.25x