Baker, Inc had reported the following details for the year ended December 31, 2017

Net sales $25,450,000
Total assets 17,700,000
Total liabilities 10,300,000

The company's beginning total assets and liabilities were $14,400,000 and $9,200,000, respectively. Calculate the asset turnover ratio for 2017.
A) 2.10 times
B) 1.20 times
C) 1.56 times
D) 1.59 times

D .Asset turnover ratio = Net sales / Average total assets
Net sales = $25,450,000
Average total assets = ($14,400,000 + $17,700,000 ) / 2 = $16,050,000
Asset turnover ratio = $25,450,000 / $16,050,000 = 1.59

Business

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