The Mount Vernon Company Reported Gross Sales of $850,000, Sales

Multiple Choice

The Mount Vernon Company reported gross sales of $850,000, sales returns and allowances of $5,000 and sales discounts of $5,000. The company has total average assets of $500,000, of which $250,000 is property, plant, and equipment. What is the company's asset turnover ratio?

A) 1.68 times
B) 1.72 times
C) 0.59 times
D) 1.7 times