The asset turnover of Ryan Company is 7.2. The total assets of Ryan are $88,000. Ryan's net sales were:
A)$6,336
B)$63,360
C)$633,000
D)$633,600
E)None of these

Name: The asset turnover of Ryan Company is 7.2. The total assets of Ryan are $88,000. Ryan's net sales were: A)$6,336 B)$63,360 C)$633,000 D)$633,600 E)None of these
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Question

Quizplus · Accepted Answer

Asset turnover is calculated as Net Sales divided by Total Assets. Therefore, Net Sales = Asset Turnover * Total Assets = 7.2 * $88,000 = $633,600.

The Asset Turnover of Ryan Company Is 7