Redribbon Gallery Reported the Following Assets on Its December 31

question 43

Essay

Redribbon Gallery reported the following assets on its December 31, 2015 balance sheet:
$$\begin{array} { l c c } \text { Cash } & \text { Dec. } 31,2015 & \text { Dec. 31, 2014 } \\\text { Accounts Receivable } & \$ 35,000 & \$ 28,000 \\\text { Merchandise Inventory } & 97,000 & 85,000 \\\text { Prepaid Expenses } & 80,000 & 6 2 , 0 0 0 \\\text { Property, plant, and equipment, net } & 29,000 & 20,000 \\\text { rent } & 3 0 , 0 0 0& 18,000\end{array}$$ If the net sales for the year amounted to $850,000, what is the asset turnover ratio for 2015?

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Definitions:

Mercury

A chemical element with symbol Hg and atomic number 80, known for being a liquid metal at room temperature and for its toxicity.

Cerebrospinal Fluid

A clear, colorless body fluid found in the brain and spinal cord, it acts as a cushion for the brain's cortex, providing basic mechanical and immunological protection to the brain inside the skull.

Amphetamine

A potent central nervous system stimulant used to treat attention deficit hyperactivity disorder (ADHD) and narcolepsy, and recreationally as a performance enhancer and euphoriant.

Blood-Brain Barrier

A selective permeability barrier that protects the brain from foreign substances in the blood that may injure the brain.