Question

During 2022, Ayya Comp. reported net sales of $2000000, net income of 5800000, and depreciation expense of $100000. Ayay reported beginning total assets of $1000000, ending total assets of $1300000 plant assets of $500000, and accumulated depreciation of $500000. Ayaya a t turnover is (Round answer to 2 decimal places, .g. 15.20.) 1.54 times 0.80 times 1.74 times 2.00 times

Answer 1

Correct answer--------------1.74 times

Working

	Asset Turnover
A	Sales	$        2,000,000.00
B	Beginning Balance of Total Assets	$        1,000,000.00
C	Ending Balance of Total Assets (see working #1)	$        1,300,000.00
D = (B+C)/2	Average Total Assets	$        1,150,000.00
E= A/D	Asset Turnover	1.74