Mahoe Corporation has provided the following financial data:Balance SheetDecember 31, Year 2 and Year 1AssetsYear 2Year 1Current assets:        Cash$105,000 $190,000   Accounts receivable, net 255,000  220,000   Inventory 206,000  200,000   Prepaid expenses 44,000  50,000 Total current assets 610,000  660,000 Plant and equipment, net 1,065,000  970,000 Total assets$ 1,675,000 $ 1,630,000        Liabilities and Stockholders' Equity      Current liabilities:        Accounts payable$119,000 $110,000   Accrued liabilities 88,000  80,000   Notes payable, short term 53,000  50,000 Total current liabilities 260,000  240,000 Bonds payable 110,000  110,000 Total liabilities 370,000  350,000 Stockholders'

equity:        Common stock, $5 par value 250,000  250,000   Additional paid-in capital 70,000  70,000   Retained earnings 985,000  960,000 Total stockholders' equity 1,305,000  1,280,000 Total liabilities & stockholders' equity$ 1,675,000 $ 1,630,000 Income StatementFor the Year Ended December 31, Year 2Sales (all on account)$1,330,000 Cost of goods sold 890,000 Gross margin 440,000 Operating expenses 393,571 Net operating income 46,429 Interest expense 10,000 Net income before taxes 36,429 Income taxes (30%) 10,929 Net income$  25,500 Dividends on common stock during Year 2 totaled $500. The market price of common stock at the end of Year 2 was $8.06 per share.The company's total asset turnover for Year 2 is closest to:

A. 6.57
B. 0.15
C. 0.80
D. 1.25


Answer: C

Business

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