Flagship Logistics provides the following information Operat

Flagship Logistics provides the following information: Operating income Net sales Average total assets $1,500,000 $13,500,000 $1,850,000 30% Managements target rate of return What is the company\'s asset turnover ratio? (Round your answer to two decimal places.) O A. 7.30 OB. 4.03 O C. 4.66 OD. 12.86

Solution

Asset Turnover Ratio = Sales / Average Total Assets

= $ 13,500,000 / $ 1,850,000

= 7.297297297

= 7.30

Hence, the correct answer is A. 7.30