Calculate the asset turnover Horizon Corporation provides the following financial data for the current year:• Operating income: $85,000• Average total assets: $620,000•Net sales: $820,000Required rate of return: 14%Calculate the asset turnover.A) 1.32 timesB) 1.48 timesC) 1.67 times

Step 1: Definition of Asset TurnoverThe asset turnover ratio measures a company's efficiency in…

Answered: Horizon Corporation provides the…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter3: Evaluation Of Financial Performance

Section: Chapter Questions

Problem 19P

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Horizon Corporation provides the following financial data for the current year: • Operating income: $85,000 • Average total assets: $620,000 • Net sales: $820,000 Required rate of return: 14% Calculate the asset turnover. A) 1.32 times B) 1.48 times C) 1.67 times