On January 1, 2012 Hillop Inc

Multiple Choice

On January 1, 2012 Hillop Inc. had total assets of $360,000. During the year, the company purchased new machinery worth $80,000 and promised to pay the amount due after two years. Throughout the year, it earned revenue of $50,000 every month. Calculate the asset turnover ratio.

A) 1.2 times
B) 1.8 times
C) 1.5 times
D) 1.4 times