Pizza, Inc For the Year Ending December 31, 2019 Calculate the Asset Turnover Ratio for 2019

question 71

Multiple Choice

Pizza, Inc. provides the following data: $$\begin{array} { | l | r | r | } \hline & 2019 & 2018 \\\hline \text { Assets } & & \\\hline \text { Current Assets: } & & \\\hline \text { Cash and Cash Equivalents } & \$ 30,000 & \$ 25,000 \\\hline \text { Accounts Receivable, Net } & 37,000 & 62,000 \\\hline \text { Merchandise Inventory } & \underline { 59,000 } & \underline { 50,000 } \\\hline \text { Total Current Assets } & \$ 126,000 & 137,000 \\\hline \text { Property, Plant, and Equipment, Net } & \$ 124,000 & \underline { 120,000 } \\\hline \text { Total Assets } & \$ 250,000 & \$ 257,000 \\\hline\end{array}$$ For the year ending December 31, 2019:
$$\begin{array} { | l | r | } \hline \text { Net Credit Sales } & \$ 510,000 \\\hline \text { Cost of Goods Sold } &( \$ 160,000) \\\hline \text { Gross Profit } & \$ 350,000 \\\hline\end{array}$$ Calculate the asset turnover ratio for 2019. There are no cash sales. (Round your answer to two decimal places.)

• A) 4.05 times
• B) 1.01 times
• C) 0.64 times
• D) 2.01 times

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