Question

In: Finance

A firm’s Total Assets is $4,000,000 and its Total Asset Turnover is 0.25. This firm’s Sales...

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

Solutions

Expert Solution

Asset turnover ratio = net sales ÷ average total assets

0.25= net sales ÷ 4000000

Net sales = 1000000


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