Ironwood Manufacturing Ltd. has compiled the following information for the (in millions): Category Amount Income Statement Data Net sales $800 Cost of Goods Sold (COGS) $400 SG&A expense $60 Interest expense $12 Income taxes $72 Net income $256 Balance Sheet Data Beginning total liabilities and equity $1,200 Ending total liabilities and equity $1,500 Based on the above data, Ironwood's total asset turnover is: a) 0.50x b) Cannot be determined c) 0.59x d) 0.47x

Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter6: Merchandising Transactions
Section: Chapter Questions
Problem 22Q: The following is select account information for August Sundries. Sales: $850,360; Sales Returns and...
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Ironwood Manufacturing Ltd. has compiled the following information for the
(in millions):
Category
Amount
Income Statement Data
Net sales
$800
Cost of Goods Sold (COGS)
$400
SG&A expense
$60
Interest expense
$12
Income taxes
$72
Net income
$256
Balance Sheet Data
Beginning total liabilities and equity $1,200
Ending total liabilities and equity
$1,500
Based on the above data, Ironwood's total asset turnover is:
a) 0.50x
b) Cannot be determined
c) 0.59x
d) 0.47x
Transcribed Image Text:Ironwood Manufacturing Ltd. has compiled the following information for the (in millions): Category Amount Income Statement Data Net sales $800 Cost of Goods Sold (COGS) $400 SG&A expense $60 Interest expense $12 Income taxes $72 Net income $256 Balance Sheet Data Beginning total liabilities and equity $1,200 Ending total liabilities and equity $1,500 Based on the above data, Ironwood's total asset turnover is: a) 0.50x b) Cannot be determined c) 0.59x d) 0.47x
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