Edmond reported average total assets of $9,965 million and net sales of $10,430 million. Its total asset turnover equals .96.

Question

Quizplus · Accepted Answer

Total asset turnover is calculated by dividing net sales by average total assets. Therefore, if the total asset turnover is .96, we can set up the equation as follows: 
.96 = 10,430 / 9,965 
However, when we solve for this equation, we get a total asset turnover of 1.05, not .96. Therefore, the statement is false.

Edmond Reported Average Total Assets of $9,965 Million and Net