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Roberts Logistics Provides the Following Information What Is the Company's Asset Turnover Ratio? (Round Your Answer

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Roberts Logistics provides the following information:  Operating income $1,600,000 Net sales $13,500,000 Average total assets $2,000,000 Management’s target rate of return 20%\begin{array} { | l | r | } \hline \text { Operating income } & \$ 1,600,000 \\\hline \text { Net sales } & \$ 13,500,000 \\\hline \text { Average total assets } & \$ 2,000,000 \\\hline \text { Management's target rate of return } & 20 \% \\\hline\end{array} What is the company's asset turnover ratio? (Round your answer to two decimal places.)


Definitions:

Retail Inventory Method

An accounting method used by retailers to estimate inventory value by converting retail prices to cost, often used for financial reporting and determining cost of goods sold.

Selling Prices

The set price at which goods and services are sold to customers, determined by factors such as cost, competition, and demand.

Ending Inventory

The cost of merchandise ready to be sold at the close of an accounting cycle, found by taking the initial inventory, adding purchases, and subtracting the cost of goods sold.

Inventory Valuation

The method used to assign a monetary value to inventory, which affects the cost of goods sold and gross profit.

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