MEGAFRAME COMPUTER COMPANY Balance Sheet As of December 31 ASSETS Cash $ 50,000 Accounts receivable 70,000 Inventory 110,000 Net plant and equipment 220,000 Total assets $ 450,000 LIABILITIES AND STOCKHOLDERS’ EQUITY Accounts payable $ 70,000 Accrued expenses 50,000 Long-term debt 130,000 Common stock 70,000 Paid-in capital 40,000 Retained earnings 90,000 Total liabilities and stockholders’ equity $ 450,000 MEGAFRAME COMPUTER COMPANY Income Statement For the year ended December 31 Sales (all on credit) $ 875,000 Cost of goods sold 600,000 Gross profit $ 275,000 Sales and administrative expenses 30,000 Depreciation 55,000 Operating profit $ 190,000 Interest expense 25,000 Profit before taxes $ 165,000 Taxes (30%) 49,500 Net income $ 115,500 Refer to the tables above. What is Megaframe Computer's total asset turnover?

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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MEGAFRAME COMPUTER COMPANY
Balance Sheet
As of December 31
ASSETS    
Cash $ 50,000
Accounts receivable   70,000
Inventory   110,000
Net plant and equipment   220,000
Total assets $ 450,000
     
LIABILITIES AND STOCKHOLDERS’ EQUITY    
Accounts payable $ 70,000
Accrued expenses   50,000
Long-term debt   130,000
Common stock   70,000
Paid-in capital   40,000
Retained earnings   90,000
Total liabilities and stockholders’ equity $ 450,000
 

 

MEGAFRAME COMPUTER COMPANY
Income Statement
For the year ended December 31
Sales (all on credit) $ 875,000
Cost of goods sold   600,000
Gross profit $ 275,000
Sales and administrative expenses   30,000
Depreciation   55,000
Operating profit $ 190,000
Interest expense   25,000
Profit before taxes $ 165,000
Taxes (30%)   49,500
Net income $ 115,500
 

 

Refer to the tables above. What is Megaframe Computer's total asset turnover?

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