Last Year's Asset Turnover Ratio Was 2

question 7

Multiple Choice

Last year's asset turnover ratio was 2.0.Sales have increased by 25% and total assets have increased by 10% since that time.What is the current asset turnover ratio?

• A) 1.82
• B) 2.05
• C) 2.15
• D) 2.27

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Definitions:

Standard Of Living

A level of wealth, comfort, material goods, and necessities available to a certain socioeconomic class or a geographic area.

Real GDP Per Person

Gross Domestic Product adjusted for inflation and divided by the total population; a measure of the economic output per resident.

Human Capital

The collective skills, knowledge, expertise, and other attributes embodied in individuals that contribute to their economic productivity.

Physical Capital

The stock of equipment and structures that are used to produce goods and services.