In: Finance
A firm’s Total Assets is $4,000,000 and its Total Asset Turnover is 0.25. This firm’s Sales equals:
a. |
$250,000 |
|
b. |
$1,000,000 |
|
c. |
$16,000,000 |
|
d. |
$40,000,000 |
Asset turnover ratio = net sales ÷ average total assets
0.25= net sales ÷ 4000000
Net sales = 1000000