On January 1, 2012 Hillop Inc

question 30

Multiple Choice

On January 1, 2012 Hillop Inc. had total assets of $360,000. During the year, the company purchased new machinery worth $80,000 and promised to pay the amount due after two years. Throughout the year, it earned revenue of $50,000 every month. Calculate the asset turnover ratio.

• A)1.2 times
• B)1.8 times
• C)1.5 times
• D)1.4 times

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