Right Company reported beginning and ending total assets of $36,000 and $30,000, respectively. Its net sales revenue for the year were $26,070. What was Right's asset turnover ratio? OA. 0.87 OB. 1.27 OC. 0.79 OD. 0.72

Right Company reported beginning and ending total assets of $36,000 and $30,000, respectively. Its net sales revenue for the year were $26,070. What was Right's asset turnover ratio? OA. 0.87 OB. 1.27 OC. 0.79 OD. 0.72

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Aneko Company reports the following: net sales of $18,000 for Year 2 and $17,100 for Year 1;…

A: The objective of the question is to calculate the total asset turnover for Aneko Company for Year 2…

Q: Fixed assets of TBZ Ltd. are $240,000 and the turnover of the company is $900,000. What would be…

A: Analysts typically use the fixed asset turnover ratio (FAT) to assess operating performance. To…

Q: A company had average total assets of $500,000, gross sales of $575,000, and net sales of $550,000.…

A: Total asset turnover = Net sales / Average total assets

Q: Given the following information, determine Salem Company's fixed assets Sales = $10,000,000 Total…

A: Current assets: Current assets are all those assets that are expected to be sold or used as a result…

Q: Quick assets P208,000 Acid test…

A: Current ratio = Current Assets / Current Liabilities Quick Assets = Quick Assets / Current…

Q: Average total assets (excluding long-term inve

A: The Asset turnover ratio compares the worth of a company's sales or revenues to the value of its…

Q: Brad's BBQ reported sales of $750,000 and net income of $29,500. Brad's also reported ending total…

A: Financial Ratios: Financial ratios are the metrics used to evaluate the liquidity, capabilities,…

Q: Provide Correct Answer

A: Understanding Asset Turnover Ratios and Their InterpretationThe asset turnover ratio is a financial…

Q: SE9-10 Return on Assets and Asset Turnover Last Year, the Miller Company reported on assets of 15…

A: Last year Return on assets =15% Assets turnover =1.6 Current year Return on assets =19% Assets…

Q: Please Give answer

Q: None

A: To calculate the total asset turnover for Bell Corporation, you need to use the formula for asset…

Q: 8 The records of Milwakee sprinkler systems report net sales of 520,000 net income of 130,000 and…

A: Ratio Analysis - The ratio is the technique used by the prospective investor or an individual or…

Q: Provide The Answer with Explanation and Correct answer pls

A: Step 1: Introduction to Asset Turnover:Asset turnover assesses the efficiency of the company in…

Q: Want Answer please provide

A: Asset turnover ratio is a measurement which shows how efficient a company is using its resources to…

Q: Mechforce Manufacturing's net Income was $580,000 on sales of $18 million. Average assets for the…

A: Turnover is calculated by dividing net sales revenue by average operating assets. The average…

Q: Ans pls

A: Asset turnover ratio = net sales/average total assets. The numerator is net sales and denominator is…

Q: Answer with this question

A: Step 1: Introduction to the Total Asset turnover:Total asset turnover is given as the sales divided…

Q: Richard's Sporting Goods reports net income of $120,000, net sales of $520,000, and average assets…

A: The asset turnover is calculated as ratio of sales and assets.

Q: ABC Company reported in 2021 sales of P15,000,000, an asset turnover ratio of 3.0, and a rate of…

A: Asset turnover ratio = Sales/Average total assets Return on average assets = Net income/Average…

Q: Bill's Pizza has an asset turnover of 3.5. The total assets of Bill's were $95,000. The net sales of…

A: Net sale:Net sales are total sales after deducting goods returned, discounts, and allowances for…

Q: nancial statement data for the years ending December 31, 20Y3 and 20Y2, for Lawson Company follow:…

A: The question is based on the concept of Financial Accounting. Asset turnover ratio can be calculated…

Q: Polycryo, Inc. has a gross profit of $157,500 on sales of $525,000. The balance sheet shows average…

A: Inventory turnover = Cost of goods sold / Average inventory where, Average inventory = (Beginning…

Q: Computing the asset turnover ratio Biagas, Inc. had net sales of $55,500,000 for the year ended May…

A: Asset turnover ratio = Net sales / Average total assets Where, Average total assets = ( Beginning…

Q: Tatye Corporation reported Net sales of $4.6 million and average Total assets of $1.1 million. The…

A: The asset turnover ratio is the proportion of a company's sales or revenues to the value of its…

Q: Net Sales = $88,122 Total Assets = $189,100 Calculate Asset Turnover ( Round to nearest hundredth…

A: When actual or intangible goods, services, or assets are traded for money and include two or more…

Q: What is the right answer

A: To determine the total asset turnover for Bell Corporation, we can use the following formula:Total…

Q: Provide solution for this correct answer

A: Step 1: Introduction to the Assets turnover ratio:Total asset turnover ratio is one of the…

Q: Correct answer

A: The answer is B. EACH $1.00 OF ASSETS IN THE FIRM GENERATES $1.49 OF SALES REVENUE.In other words,…

Q: The following information is available for Coulibaly Company: Total sales Total assets: Beginning of…

A: Ratio Analysis - The ratio is the technique used by the prospective investor or an individual or…

Q: Thank you ...

A: Step 1: Calculate Average Total AssetsAverage Total Assets = (Beginning Total Assets + Ending Total…

Q: Brad’s BBQ reported sales of $735,000 and net income of $28,000. Brad’s also reported ending total…

Q: Lake Company reported beginning and ending Total Assets of $25,000 and $35,000 respectively. The Net…

Q: want answer

A: Total Asset Turnover Ratio = Net Sales ÷ Average Total AssetsTo compute for net sales, we use the…

Q: Aneko Company reports the following: net sales of $14,800 for Year 2 and $13,990 for Year 1;…

A: Definition: Assets: These are the resources owned and controlled by business and used to produce…

Q: If Blue Sky Company has prior year total assets of $7,557,962, current year total assets of…

A: Total asset turnover is a fiscal rate that measures a company's capability to induce cash from…

Q: Asset Turnover Financial statement data for the years ending December 31, 20Y3 and 20Y2, for…

A: Given: 20Y3 20Y2 Sales $2,310,000 $2,278,000 Assets beginning of the year $680,000 $660,000…

Q: Asset turnover A company reports the following: Sales $724,200 Average total assets 426,000…

A: The asset turnover ratio can be calculated by dividing the net sales value by the average of total…

Q: Kraft Inc. has a gross profit of $45,000 on sales of $150,000. The balance sheet shows average total…

A: The gross profit represents the income generated by the corporation after eliminating the costs of…

Q: Flask Company reports net sales of $4,343 million; cost of goods sold of $2,808 million; net income…

A: Total assets turnover ratio is the ratio of net sales to total assets.It is a measure of the value…

Q: Required: Calculate the return on assets, the profit margin, and the asset turnover ratio for…

A: Solution:- Given, Billy’s BBQ reported sales = $750,000 Net income = $29,500. Billy’s also reported…

Q: Current Attempt in Progress Sandhill Co. reports the following information (in millions) during a…

A: Financial ratios are quantitative measurements that are used to assess and examine many facets of…

Q: Ratio Analysis Formula current Current ratio assets/ Current liabilities Account Net sales/ Receivab…

A: There are two companies AIOTHAIM and Panda Inc. Comparing ratios between these two companies. (1)…

Question

Right Company reported beginning and ending total assets of $36,000 and $30,000, respectively. Its net sales
revenue for the year were $26,070. What was Right's asset turnover ratio?
A. 0.87
OB. 1.27
OC. 0.79
OD. 0.72

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1: Introduction

VIEW

Step 2: Working note #1:- Calculation of average total assets.

VIEW

Step 3: Working Note #2:- Calculation of asset turnover ratio

VIEW

Solution

VIEW

Step by step

Solved in 4 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Lok Company reports net sales of $5,705,000 for Year 2 and $7,621,000 for Year 3. End-of-year balances for total assets are Year 1, $1,652,000; Year 2, $1,841,000; and Year 3, $1,964,000. (1) Compute Lok's total asset turnover for Year 2 and Year 3. (2) Lok's competitor has a Total Asset Turnover of 3.0 during Year 3. Is Lok performing better or worse than its competitor on the basis of total asset turnover?
A company had average total assets of $897,000. Its gross sales were $1,090,000 and its net sales were $1,000,000. The company's total asset turnover equals: A. 0.82.B. 0.90.C. 1.09.D. 1.11.E. 1.26.
Net income = $156,042 Sales = $4,063,589 Determina los siguientes valores para la empresa Current ratio _____________ Quick ratio _____________ Days’ sales outstanding (DSO) _____________ Total asset turnover ratio _____________ Fixed asset turnover ratio _____________
I want the Correct answer in text Format
Compute the following the financial data for the year. 4. Average sale period 5. Operating cycle 6. Total asset turnover
Lok Company reports net sales of $5,562,000 for Year 2 and $7,019,000 for Year 3. End-of-year balances for total assets are Year 1, $1,658,000; Year 2, $1,768,000; and Year 3, $1,949,000. (1) Compute Lok's total asset turnover for Year 2 and Year 3. (2) Lok's competitor has a Total Asset Turnover of 3.0 during Year 3. Is Lok performing better or worse than its competitor on the basis of total asset turnover?
Calculate the total asset turnover (sales / total assets) for the firm below. Sales 5000 COGS $1,200 Depreciation $800 Interest $500 Net Income $200 Total Assets 1400
Select financial statement data for two recent years for Davenport Company are as follows: Line Item Description 20Y5 20Y4 Sales $2,011,500 $1,088,000 Fixed assets: Beginning of year 720,000 640,000 End of year 770,000 720,000 a. Determine the fixed asset turnover ratio for 20Y4 and 20Y5. Round your answers to one decimal place. Line Item Description 20Y5 20Y4 Fixed Asset Turnover Ratio fill in the blank 1 of 2 fill in the blank 2 of 2
Calculate the asset efficiency - receivables turnover ratio, inventory turnover ratio, fixed asset turnover ratio and total asset turnover ratio.
. In 2018, a company had beginning total assets of $923,000, and ending total assets of $871,000. Its gross sales were $1,090,000 and its net sales were $1,000,000. The company's total asset turnover is equal to: A. 0.82 B. 0.90 C. 1.09 D. 1.11
Aardvark & Co. has sales of $291,200, cost of goods sold of $163,300, net profit of $11,360, net fixed assets of $154, 500, and current assets of $89, 500. What is the total asset turnover rate? a) 1.19 b) 1.11 c) 1.24 d) 1.08 e) 1.28
The Huntzicker Company reported gross sales of $850,000, sales return and allowances of $5,000 and sales discounts of $5,000. The company has average total assets of $500,000, of which $250,000 is property, plant, and equipment. What is the company's asset turnover ratio? a. 1.68 times b. 1.72 times c. 0.59 times d. 1.8 times