Question

At the beginning of the year, Carson Company reported total current assets of $658,000 and total assets of $2,450,000. Carson reported sales of $6,000,000 for the year. At the end of the year, Carson reported total current assets of $790,000 and total assets of $2,800,000. Compute the total asset turnover.

a. 2.45
b. 2.29
c. 8.29
d. 2.14

Answer 1

Total Asset Turnover: 2.2857

Step-by-step explanation:

Total Assets

Begininng Balance 2,450,000

Ending Balance 2,800,000

Period activity 350,000

Sales: 6,000,000

Total Asset Turnover: Sales

Average Total Assets

6,000,000

( 2,450,000 + 2,800,000 ) / 2

=

6,000,000

2,625,000

=

2.2857