XYZ Inc has the following for 2015 Net income 15953 Net sal

XYZ Inc has the following for 2015: Net income = $15,953 Net sales= $712,855 Total liabilities, beginning-year = $83,932 Total liabilities, end-of-year = 4103,201 Total stockholders\' equity, beginning-year = $198,935 Total stockholders\' equity, end-of-year = $121,851 The total asset turnover is:

2.24 times

2.81 times

3.64 times

4.67 times

6.28 times

XYZ Corporation has accumulated the following accounting data: Finished goods inventory, July 1 = $3,200 Finished goods inventory, July 31 = $ 4,000 Total cost of goods sold = $4,200 The cost of goods manufactured for July is:

Solution

Total assets=Total liabilites+Total equity

Total assets :

At beginning=(83932+198935)=$282867

At end=(103201+121851)=$225052

Average Total assets=(282867+225052)/2=$253959.5

Hence total asset turnover=Sales/Average Total assets

=(712855/253959.5)=2.81 times(Approx).

2.

Total cost of goods sold= Finished goods inventory, July 1 +Cost of goods manufactured for July- Finished goods inventory, July 31

Hence

4200=3200+cost of goods manufactured for July-4000

Hence cost of goods manufactured for July=4200+4000-3200

which is equal to

=$5000.