Murphy Company's total liabilities on December 31, 2017, amounted to $1,500,000. The debt to- equity ratio on

Question:

Murphy Company's total liabilities on December 31, 2017, amounted to $1,500,000. The debt to- equity ratio on this date was 1.5 to 1. Net income for 2017 was $250,000, and the profit margin was 5%.

Required

1. Determine Murphy's net sales for 2017.

2. Determine Murphy's total assets on December 31, 2017.

3. Determine Murphy's asset turnover ratio for 2017, using year-end total assets, rather than average total assets.

Asset Turnover
Asset turnover is sales divided by total assets. Important for comparison over time and to other companies of the same industry. This is a standard business ratio.