Asked Nov 4, 2019

During 2020, Metlock, Inc. reported net sales of $2,850,900 and net income of $1,550,000. Its balance sheet reported average total assets of $1,290,000.

Calculate the asset turnover. (Round answer to 2 decimal places, e.g. 1.25.)


Expert Answer

Step 1

Asset turnover ratio calculates how much the company was able to generate revenue using it's assets. Hence, the formula of Asset turnover ratio = Net Sales/Average Assets, where average assets = Beginning Assets+ Ending Assets/2


Step 2

We can calculate the asset turnover ratio by dividing Net Sales by average total ass...

Metlock Inc. 2020
Net Sales
Average Total Assets
Asset Turnover Ratio

Image Transcriptionclose

Metlock Inc. 2020 Net Sales Average Total Assets 2,850,900 1,290,000 Asset Turnover Ratio 2.21


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