A Company Reports the Following $$\begin{array} { l r } \text { Sales } & \$ 2,520,000 \\\text { Average total assets (excluding long-term investments) } & 1,400,000\end{array}$$

question 33

Essay

A company reports the following: $$\begin{array} { l r } \text { Sales } & \$ 2,520,000 \\\text { Average total assets (excluding long-term investments) } & 1,400,000\end{array}$$ ​
Determine the asset turnover ratio. Round your answer to one decimal place.

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Definitions:

Buy-and-Sell Agreement

a legally binding agreement between co-owners that outlines what will happen to an owner’s share of the business if they depart the business due to death or any other reason.

De Facto Corporation

A business that operates as if it were a corporation although it has not completed the formalities required for legal incorporation.

Organization Meeting

An initial meeting held to complete the formation of an entity, where bylaws are adopted, officers elected, and other organizational matters decided.

Corporate Powers

The legal rights and authorities that a corporation possesses, including entering contracts, owning property, and conducting business activities.