Question: Assume that all balance sheet amounts below represent average balance figures for a fiscal year. Total assets: $400,000 Common stock: $50,000 Additional Paid-in Capital: $150,000

Assume that all balance sheet amounts below represent average balance figures for a fiscal year.

Total assets: $400,000

Common stock: $50,000

Additional Paid-in Capital: $150,000

Retained Earnings: $35,000

Sales: $120,000

Net income: $30,000

Shares of common stock outstanding: 8,000

Common dividends: $6,000

What is the company's asset turnover ratio?

a.

0.75

b.

3.333

c.

1.702

d.

0.300

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