The Jones Company purchased assets costing $207,000 which will be depreciated over 5 years using straight-line depreciation and no salvage value. Jones also purchased land and other assets, which are not depreciable, at a cost of $207,000. It is estimated that in 5 years, the value of these assets will be unchanged. Assume that annual cash profits are $101,000 and, for return on investment (ROI) calculations, the company uses end-of-year asset values. If sales each year average $786,600, what will be the asset turnover using gross book value?

Multiple Choice

2.5

1.9

1.6

2.0