Question
In: Accounting
Total asset turnover is used to evaluate: Select one: a. The necessity for asset replacement. b....
Total asset turnover is used to evaluate:
Select one:
a. The necessity for asset replacement.
b. The efficient use of assets to generate sales.
c. The number of times operating assets were sold during the
year.
d. The cash flows used to acquire assets.
Solutions
Expert Solution
b. The efficient use of assets to generate sales.
(Explanation :- Asset turnover ratio is a type of efficiency ratio that measures the value of your business’s sales revenue relative to the value of your company’s assets. It’s an excellent indicator of the efficiency with which a company can use assets to generate revenue)
ekkarill92 answered 1 year agoRelated Solutions
What is a firm's total asset turnover
What is a firm's total asset turnover, If its fixed assets are 120,000 current assets are 30,000 current liabilities are 44,000 sales were 200,000 and net income was 75,000.
The total asset turnover should generally be higher in value than the fixed-asset turnover. A. True...
The total asset turnover should generally be higher in value
than the fixed-asset turnover.
A. True
B. False
Discuss when total asset turnover would be more important than fixed asset turnover. Provide an example.
Discuss when total asset turnover would be more important than
fixed asset turnover. Provide an example.
Discuss when total asset turnover would be more important than fixed asset turnover. Provide an example.
Discuss when total asset turnover would be more important than
fixed asset turnover. Provide an example.
Total asset cost plus depreciation expense equals book value. Select one: a. TRUE b. FALSE
Total asset cost plus depreciation expense equals book
value.
Select one:
a. TRUE
b. FALSE
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
Total asset turnover 1.5 times Average collection period (assume 365-day year) 15 days Fixed asset turnover...
Total asset turnover
1.5
times
Average collection period (assume 365-day year)
15
days
Fixed asset turnover
5
times
Inventory turnover (based on cost of goods sold)
3
times
Current ratio
2.0
times
Sales (all on credit)
$4,000,000
Cost of goods sold
75%
of sales
Debt ratio
40%
Fill in the assets section of the pro forma balance
sheet. (Round all items to the nearest dollar.)
Cash
$
Accounts receivable
Inventories
Net fixed assets
Total assets
$
Fill in the liabilities...
What is the average collection period, inventory turnover, and total asset turnover for P&G from 2016,...
What is the average collection period, inventory turnover, and
total asset turnover for P&G from 2016, 2017, and 2018 using
http://financials.morningstar.com/balance-sheet/bs.html?t=PG®ion=usa&culture=en-US
http://financials.morningstar.com/income-statement/is.html?t=PG®ion=usa&culture=en-US
http://financials.morningstar.com/cash-flow/cf.html?t=PG®ion=usa&culture=en-US
The Harris Corporation currently has the following ratios: Total asset turnover = 1.6 (sales/total assets) Total...
The Harris Corporation currently has the following ratios:
Total asset turnover = 1.6 (sales/total assets)
Total debt to total assets = .5
Current ratio = 1.7
Current liabilities = $2,000,000
(a) If Hariss's sales are $16,000,000 what is the amount of
total assets? (1.6=sales/TA)
(b) Of the total in (a) above, what is the amount of current
assets? (current ratio = CA/CL=1.7)
(c) What is the total debt of the firm? (total debt to assets =
total debt/TA from (a))...
A firm has a net profit margin of 4.5%, a total asset turnover of 0.72, and...
A firm has a net profit margin of 4.5%, a total asset turnover
of 0.72, and a financial leverage multiplier of 1.43.
1. Calculate the firm's ROA and ROE.
2. What is the advantage to using the DuPont system to calculate
ROE over the direct calculation of earnings available for common
stockholders divided by common stock equity?
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