elected items from Lemus Enterprises 12-31-2019 and 12-31-2018, financial statements are presented below: 2019 2018 Accounts receivable $ 40,000 $ 36,000 Merchandise inventory $ 28,000 35,000 Net sales 190,000 186,000 Cost of goods sold 114,000 108,000 Total assets 425,000 405,000 Total shareholders' equity 240,000 225,000 Net income 32,500 28,000 Lemus's 2019 asset turnover is (rounded): Group of answer choices 3.73. 2.79. 2.24. 0.46.
elected items from Lemus Enterprises 12-31-2019 and 12-31-2018, financial statements are presented below: 2019 2018 Accounts receivable $ 40,000 $ 36,000 Merchandise inventory $ 28,000 35,000 Net sales 190,000 186,000 Cost of goods sold 114,000 108,000 Total assets 425,000 405,000 Total shareholders' equity 240,000 225,000 Net income 32,500 28,000 Lemus's 2019 asset turnover is (rounded): Group of answer choices 3.73. 2.79. 2.24. 0.46.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
elected items from Lemus Enterprises 12-31-2019 and 12-31-2018, financial statements are presented below:
| 2019 | 2018 | ||||||
| $ | 40,000 | $ | 36,000 | ||||
| Merchandise inventory | $ | 28,000 | 35,000 | ||||
| Net sales | 190,000 | 186,000 | |||||
| Cost of goods sold | 114,000 | 108,000 | |||||
| Total assets | 425,000 | 405,000 | |||||
| Total shareholders' equity | 240,000 | 225,000 | |||||
| Net income | 32,500 | 28,000 |
Lemus's 2019 asset turnover is (rounded):
Group of answer choices
3.73.
2.79.
2.24.
0.46.
Expert Solution
Step 1
Asset turnover ratio= Net sales/ average total assets
calculation of average total asset = (opening asset + closing asset)/2
= (425000+ 405000)/2
= 415000
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