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Accounting

27th Edition
WARREN + 5 others
ISBN: 9781337272094

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BuyFindarrow_forward

Accounting

27th Edition
WARREN + 5 others
ISBN: 9781337272094
Textbook Problem

Asset turnover

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.

To determine

Financial Ratios: Financial ratios are the metrics used to evaluate the liquidity, capabilities, profitability, and overall performance of a company.

To compute: Asset turnover ratio

Given info: Sales and average total assets

Explanation

Asset turnover ratio is used to determine the asset’s efficiency towards sales.

Formula: Asset turnover =</

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