MARNI COMPANY
Balance Sheet
As of December 31
ASSETS
Cash = $50,000
Accounts receivable = 100.000
Inventory = 200.000
Net plant and equipment = 650,000
Total assets = $1,000,000
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable = $100,000
Accrued expenses = 90,000
Long-term debt = 250,000
Common stock = 100.000
Paid-in capital = 50,000
Retained earnings = 410.000
Total liabilities and stockholders' equity = $1,000,000
MARNI COMPANY
Income Statement
For the year ended December 31
Sales (all on credit) $2,000,000
Cost of goods sold 1.750.000
Gross profit $250,000
Sales and administrative expenses 30,000
Fixed lease expenses 10,000
Depreciation 60,000
Operating profit $150,000
Interest expense 25.000
Profit before taxes $125,000
Taxes (40%)
50,000
Net income
$75,000
Refer to the tables above. What is Marni's total asset turnover?
A. 1x
B. 4x
C. 2x
D. 13.3x