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

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

ekkarill92 answered 3 years ago

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