Blueribbon Gallery Reported the Following Assets on Its December 31,2019

question 136

Essay

Blueribbon Gallery reported the following assets on its December 31,2019 balance sheet:
$\begin{array}{lll}&\text { Dec. 31,2018}&\text { Dec. 31,2019}\\\text { Cash } & \$ 35,000 & \$ 28,000 \\\text { Accounts Receivable } & 97,000 & 85,000 \\\text { Merchandise Inventory } & 80,000 & 62,000 \\\text { Prepaid Expenses } & 29,000 & 20,000 \\\text { Property, plant, and equipment, net } & 30,000 & 18,000\end{array}$
If the net sales for the year amounted to $850,000,what is the asset turnover ratio for 2019?

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Definitions:

Consider Producing

Evaluating or thinking about creating, manufacturing, or bringing forth goods or products.

Mirror Image Rule

A common law rule that requires, for a valid contractual agreement, that the terms of the offeree’s acceptance adhere exactly to the terms of the offeror’s offer.

Acceptance Terms

Conditions under which an offer can be accepted, forming a binding contract between the offering and accepting parties.

Offer Terms

The specific conditions, including price, duration, and duties, outlined in a proposal to enter into a contract or agreement.