Question

Romney's Marketing Company has the following adjusted trial balance at the end of the current year. No dividends were declared. However, 500 shares ($0.10 par value per share) issued at the end of the year for $3,000 are included below:

	Debit				Credit
Cash	$	1,500
Accounts receivable		2,200
Interest receivable		100
Prepaid insurance		1,600
Notes receivable (long-term)		2,800
Equipment		15,290
Accumulated depreciation				$	3,000
Accounts payable					2,400
Accrued expenses payable					3,920
Income taxes payable					2,700
Unearned rent revenue					500
Common Stock (800 shares)					80
Additional paid-in capital					3,620
Retained earnings					2,000
Sales revenue					38,500
Interest revenue					100
Rent revenue					800
Wages expense		19,500
Depreciation expense		1,800
Utilities expense		380
Insurance expense		750
Rent expense		9,000
Income tax expense		2,700
Total	$	57,620		$	57,620

a. Compute total assets for Romney’s Marketing Company based on the adjusted trial balance.

26490

	Total assets $

b. Compute the company's total asset turnover for the current year, assuming total assets at the end of the prior year were $16,050.

	Total Asset Turnover Choose Numerator: / Choose Denominator: = Total Asset Turnover / = Total asset turnover / =

Answer 1