Peartree Company Provides the Following Data Additional Information:
• Net Sales (All on Account): $240,000
•

question 82

Multiple Choice

Peartree Company provides the following data:
$$\begin{array} { | l | r | r | } \hline \text { BALANCE SHEET } & \text { Dec 31,2014 } & \text { Dec 31,2013 } \\\hline \text { Cash } & \$ 21,000 & \$ 18,000 \\\hline \text { Accounts receivable, net } & 31,000 & 35,000 \\\hline \text { Inventory } & 53,000 & 25,000 \\\hline \text { PP\&E, net } & 120,000 & 90,000 \\\hline \text { Total assets } & \$ 225,000 & \$ 168,000 \\\hline\end{array}$$
Additional information:
• Net sales (all on account) : $240,000
• Cost of goods sold: $110,000
How much is the asset turnover for 2014?

• A) 7.27
• B) 1.22
• C) 1.55
• D) 7.07

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Definitions:

Enforceable

Capable of being executed or imposed in accordance with legal or contractual requirements.

Debt

Money owed by one party, the debtor, to another party, the creditor; an obligation to pay or do something.

Enforceable

Legally binding; capable of being upheld or imposed in a court of law.

Concessionaire

An entity granted the right to operate a business within the premises owned by another, often in public or entertainment venues.