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7 June, 16:12

Maple Corp. had net sales of $204,550 for the year ended December 31, 2017. Its beginning and ending total assets were $83,200 and $116,500, respectively. Determine Maple's asset turnover ratio for the year ended December 31, 2017. (Round your answer to two decimal places.)

A. 2.46 times

B. 2.05 times

C. 0.49 times

D. 1.16 times

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Answers (1)
  1. 7 June, 16:49
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    B. 2.05 times

    Explanation:

    Asset turnover ratio is computed by dividing net sales by average total assets

    Given the following information about Maple Corp. for the year ended December 31, 2017

    Beginning total assets = $83,200

    Ending total assets = $116,500

    Average total assets = (83,200+116,500) / 2

    = 199700 / 2

    = $99,850

    net sales = $204,550

    Asset turnover ratio = net sales/average total assets

    = $204,550/$99,850

    = 2.05 times
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