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d1i1m1o1n
1 month 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:
Mariulka [3.1K]1 month ago
4 0

Answer:

0.45

Explanation:

Total asset turnover indicates the ratio of total assets to total revenue. It evaluates how effectively a company is employing its assets to generate sales.

The calculation is performed as follows: Net Sales / Average Total Assets.

Average total assets are determined by: (Asset at Start + Asset at End) / 2.

Using the given data:

Total revenue = $900,000 and total assets = $2,000,000.

$900,000/$2,000,000 = 0.45.

Note: Since the beginning and ending assets are not specified, we assume $2,000,000 represents the average assets.

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