Seidner,Inc Calculate the Asset Turnover Ratio for 2017

question 52

Multiple Choice

Seidner,Inc.provides the following data: $$\begin{array} { | l | r | r | } \hline & 2017 & 2016 \\\hline \text { Assets } & & \\\hline \text { Current Assets: } & & \\\hline \text { Cash and Cash Equivalents } & \$ 40,000 & \$ 25,000 \\\hline \text { Accounts Receivable, Net } & 37,000 & 62,000 \\\hline \text { Merchandise Inventory } & \underline { 60,000 } & \underline { 50,000 } \\\hline \text { Total Current Assets } & \$ 137,000 & 137,000 \\\hline \text { Property, Plant, and Equipment, Net } & \$ 121,000 & \underline { 120,000 } \\\hline \text { Total Assets } & \$ 258,000 & \$ 257,000 \\\hline\end{array}$$ $$\begin{array} { | l | r | } \hline \text { Net Credit Sales } & \$ 550,000 \\\hline \text { Cost of Goods Sold } & ( 155,000) \\\hline \text { Gross Profit } & \$ 395,000 \\\hline\end{array}$$ Calculate the asset turnover ratio for 2017.(Round your answer to two decimal places. )

• A)4.01 times
• B)1.07 times
• C)0.60 times
• D)2.14 times

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Definitions:

Corporation's Property

Refers to the assets owned by a corporation, including real estate, equipment, and intellectual property.

Compulsory Share Exchange

A mandatory process where shares of one company are exchanged for those of another, often during mergers or acquisitions.

Short-Form Merger

A type of merger that occurs when a parent company absorbs a subsidiary without obtaining approval from the subsidiary’s shareholders, typically allowed under certain conditions by law.

Statutory Provisions

Specific requirements, rules, or laws enacted by a government’s legislative body.