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Alekssandra [29.7K]
2 years ago
12

A firm with $900,000 in sales, cash on hand of $1,150,000, liabilities of $400,000 and total assets of $2 million has a total as

set turnover of ______ times.
Business
1 answer:
notsponge [240]2 years ago
4 0

Answer:

0.45

Explanation:

Total Asset turnover is the relationship between the total asset and the total sales.  It measure the turnover generated by assets and shows how fully a company is utilizing its assets.

It is calculated as  Net Sales / Average Total asset.

Average total asset is calculated as  Asset at Beginning  + Asset at closing / 2

Applying the formula

The total sales = $900,000  while the total asset is $2, 000,000

$900,000/$2,000,000 =  0.45

Note: The beginning and closing Asset were not given so $2,000,000 is regarded to as the average asset.

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