The total asset turnover ratio is sales ÷ average total assets. Total assets at January 1 were $608,000; at December 31, they were $706,000. Average total assets equaled ($608,000 + $706,000) ÷ 2, or $657,000. Sales is given as $900,000. Thus, the total asset turnover is $900,000 ÷ $657,000, which equals 1.37.
The total asset turnover ratio is sales ÷ average total assets. This is sales ÷ average assets excluding cash. Cash is an asset and should be included.
The total asset turnover ratio is sales ÷ average total assets. This is sales ÷ total assets at the beginning of the year. Average total assets is the average of the beginning and ending balances.
The total asset turnover ratio is sales ÷ average total assets. This is sales ÷ year-end total assets. Average total assets is the average of the beginning and ending balances.
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For the year just ended, Moreland had net income of $96,000 on $900,000 of sales. Moreland's total asset turnover ratio is
