Pizza, Inc. provides the following data: 20192018Assets Current Assets: Cash and Cash Equivalents$35,000$25,000 Accounts Receivable, Net32,00062,000 Merchandise Inventory58,00050,000Total Current Assets$125,000137,000Property, Plant, and Equipment, Net$123,000120,000Total Assets$248,000$257,000 For the year ending December 31, 2019:Net Credit Sales$530,000Cost of Goods Sold(165,000)Gross Profit$365,000 Calculate the asset turnover ratio for 2019. There are no cash sales. (Round your answer to two decimal places.)

ASSET TURNOVER RATIO = NET SALES / AVERAGE TOTAL ASSETS

Answered: Pizza, Inc. provides the following…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Pizza, Inc. provides the following data:

	2019	2018
Assets
Current Assets:
Cash and Cash Equivalents	$35,000	$25,000
Accounts Receivable, Net	32,000	62,000
Merchandise Inventory	58,000	50,000
Total Current Assets	$125,000	137,000
Property, Plant, and Equipment, Net	$123,000	120,000
Total Assets	$248,000	$257,000

For the year ending December 31, 2019:

Net Credit Sales	$530,000
Cost of Goods Sold	(165,000)
Gross Profit	$365,000

Calculate the asset turnover ratio for 2019. There are no cash sales. (Round your answer to two decimal places.)

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