Homework Help is Here – Start Your Trial Now!
Business
Finance
Consider the following financial data for Leon’s Music Stores: Statement of Financial Position as of December 31, 2012 Cash & equivalents $ 100,500   Accounts payable $ 119,500 Accounts receivable   232,000   Notes payable   141,000 Inventories   281,000   Accrued wages and taxes   46,000   Total current assets $ 613,500     Total short-term liab. $ 306,500         Long-term debt   401,000 Net fixed assets   565,500   Common equity   471,500 Total assets $ 1,179,000   Total liabilities & equity $ 1,179,000               Statement of Earnings for the Year Ended December 31, 2012 Net sales $ 881,500 Cost of sales   526,000 Gross profit $ 355,500 Operating expenses   215,000   Earnings before interest and taxes (EBIT) $ 140,500 Interest expense   49,000   Earnings before taxes (EBT) $ 91,500 Federal and state income taxes (35 percent)   32,025 Net income $ 59,475       Calculate Leon’s total asset turnover.   a. 2.25   b. 0.75   c. 5.04   d. 3.14   e. 21.17

Consider the following financial data for Leon’s Music Stores: Statement of Financial Position as of December 31, 2012 Cash & equivalents $ 100,500   Accounts payable $ 119,500 Accounts receivable   232,000   Notes payable   141,000 Inventories   281,000   Accrued wages and taxes   46,000   Total current assets $ 613,500     Total short-term liab. $ 306,500         Long-term debt   401,000 Net fixed assets   565,500   Common equity   471,500 Total assets $ 1,179,000   Total liabilities & equity $ 1,179,000               Statement of Earnings for the Year Ended December 31, 2012 Net sales $ 881,500 Cost of sales   526,000 Gross profit $ 355,500 Operating expenses   215,000   Earnings before interest and taxes (EBIT) $ 140,500 Interest expense   49,000   Earnings before taxes (EBT) $ 91,500 Federal and state income taxes (35 percent)   32,025 Net income $ 59,475       Calculate Leon’s total asset turnover.   a. 2.25   b. 0.75   c. 5.04   d. 3.14   e. 21.17

Managerial Accounting: The Cornerstone of Business Decision-Making
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 50E: Juroe Company provided the following income statement for last year: Juroes balance sheet as of...
See similar textbooks
icon
Related questions
Topic Video
Question
  1. Consider the following financial data for Leon’s Music Stores:

    Statement of Financial Position as of December 31, 2012
    Cash & equivalents
    $
    100,500
    		   Accounts payable $
    119,500
    Accounts receivable  
    232,000
    		   Notes payable  
    141,000
    Inventories  
    281,000
    		   Accrued wages and taxes  
    46,000
      Total current assets
    $
    613,500
    		     Total short-term liab. $
    306,500
            Long-term debt  
    401,000
    Net fixed assets  
    565,500
    		   Common equity  
    471,500
    Total assets
    $
    1,179,000
    		   Total liabilities & equity $
    1,179,000
                 
    Statement of Earnings for the Year Ended December 31, 2012
    Net sales
    $
    881,500
    Cost of sales  
    526,000
    Gross profit
    $
    355,500
    Operating expenses  
    215,000
      Earnings before interest and taxes (EBIT)
    $
    140,500
    Interest expense  
    49,000
      Earnings before taxes (EBT)
    $
    91,500
    Federal and state income taxes (35 percent)  
    32,025
    Net income
    $
    59,475
         

    Calculate Leon’s total asset turnover.
      a.
    2.25
      b.
    0.75
      c.
    5.04
      d.
    3.14
      e.
    21.17
Expert Solution
steps

Step by step

Solved in 3 steps with 1 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Ratio Analysis
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Managerial Accounting: The Cornerstone of Busines…
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
College Accounting, Chapters 1-27 (New in Account…
College Accounting, Chapters 1-27 (New in Account…
Accounting
ISBN:
9781305666160
Author:
James A. Heintz, Robert W. Parry
Publisher:
Cengage Learning
College Accounting, Chapters 1-27
College Accounting, Chapters 1-27
Accounting
ISBN:
9781337794756
Author:
HEINTZ, James A.
Publisher:
Cengage Learning,
SEE MORE TEXTBOOKS