The financial statements of Parker Company include the following data $250,000 1

Question

The financial statements of Parker Company include the following data $250,000 100,000 5,000 91,400 75,000 7,000 0.38 Cant of loodh Seld Net Incoe an er he Balance Sheet December 31 Ameb 31. 222 500 27 ,200 90,700 119 700 34,000 87000 340,400 240,700 127,000 367,700 Cash eveetary 126,000 466,400 Liablities and Steckboldens Equity 38,700 $ 39,400 5,000 114,400 69,000 107,700 209,000185,000 10% Bends able Total Lisbies 143,000 352 000 $ 466 400 75,000 260,000 Retained Eam 5367700 Required: Compute the asset turnover ratio for 2016. Round your answer to the nearest percentage. (If necessary, consult a list of formulas) Asset turnover ratio Clear Undo Help 0 Type here to search

Explanation / Answer

Average total assets = (Beginning total assets + Ending total assets) ÷ 2 = (119,700+222,500)÷2 = 342,200÷2 = $171,100

Asset turnover ratio = Sales ÷ Average total assets = 250,000÷171,100 = 1.4611 = 146%

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