Ramone Company had $600,000 in Net Sales for the year 2011. The total assets at the beginning of the year were $240,000 and total assets at the end of the year were $280,000. The ratio of net sales to total assets is (round answer to 2 decimal places):

Question

Quizplus · Accepted Answer

The ratio of net sales to total assets is calculated as Net Sales divided by Average Total Assets. Average Total Assets = ($240,000 + $280,000) / 2 = $260,000. Therefore, the ratio is $600,000 / $260,000 = 2.31.

Ramone Company Had $600,000 in Net Sales for the Year