In: Finance

# A small business has sales of $2 million, cost of goods sold of$12 million, net...

A small business has sales of $2 million, cost of goods sold of$12 million, net profit of $34,500,net fixed assets of$200,000, and total asset turnover of 5.25. What is the value of current assets?

## Solutions

##### Expert Solution

Total asset turnover = Net sales / Total assets

5.25 = $2,000,000 / Total assets Total assets =$2,000,000 / 5.25

Total assets = $380,952 Current assets = Total assets - Fixed assets Current assets =$380,952 - $200,000 Current assets =$180,952

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