On January 1 2017 Hilldale Inc had total assets of 361000 Du

On January 1, 2017 Hilldale, Inc. had total assets of $361,000. During the year, the company purchased new machinery worth $82,000 and promised to pay the amount due after two years. Throughout the year, it earned revenue of $57,000 every month. Calculate the asset turnover ratio. O A. 1.7 times O B. 1.81 times ° C. 106 times O D. 1.54 times

Solution

Asset turnover ratio = monthly earning * 12/((begining asset + ending asset)/2)

= 57000 * 12 /((361000 + 443000)/2)

= 1.7 times