Question

In: Accounting

Using the information shown, what is the asset turnover ratio? Net Income $500,500 Net Sales $379,000...

Using the information shown, what is the asset turnover ratio?

Net Income $500,500
Net Sales $379,000
Current Assets $750,000
Current Libabilities $212,000
Average Assets $875,000

Solutions

Expert Solution

answer 0.43 times

asset turnover ratio is calculated by dividing the net sales by average asset

asset turnover ratio=net sales/average assets

asset turnover ratio=$379000/$875000=0.43 times

note:the figures are rounded upto two decimal points


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