An explanation would be awesome On January 1 2017 Hillop Inc

An explanation would be awesome!

On January 1, 2017 Hillop, Inc. had total assets of $362,000. During the year, the company purchased new machinery worth $80,000 and promised to pay the amount due after two years. Throughout the year, it earned revenue of $59,000 every month. Calculate the asset turnover ratio. 0 A. 1.76 times 0 B. 1.02 times OC. 1.60 times O D. 1.82 times

Solution

Ending total assets = 362000+80000 = 442000

Beginning total assets = 362000

Average total assets = (362000+442000/2) = 402000

Revenue = 59000*12 = 708000

Assets turnover = 708000/402000 = 1.76

So answer is a) 1.76 Times