Answer (C) is correct . Asset turnover equals net sales divided by average total assets. Consequently, the asset turnover is .67 times per year {$480 net sales ¡Â [($748 + $691) ¡ÂAnswer (A) is incorrect because The figure of 0.08 is based on net income.
Answer (B) is incorrect because The figure of 0.46 uses cost of goods sold in the numerator.
Answer (D) is incorrect because The figure of 0.83 is based on average total shareholders’ equity.
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Devlin Company’s asset turnover for the year ended May 31, Year 2, was
