Question
Asked Dec 23, 2019
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A company reports the following:
Sales                              $4,400,000
Average total assets        2,000,000
Determine the asset turnover ratio. Round to one decimal place.

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Expert Answer

Step 1

Asset Turnover:

Asset turnover refers to the ratio calculated which determines the amount of sales revenue generated by the business with the use of the total assets owned by it.

 

Step 2

Calculate the asset turnover ...

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Sales Asset turnover ratio = Average total sales S4, 400, 000 S2, 000, 000 = 2.2

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