A firm has net working capital of $2,715,net fixed assets of $22,407,sales of $31,350,and current liabilities of $3,908.How many dollars worth of sales are generated from every $1 in total assets?
A)$1.08
B)$1.14
C)$1.19
D)$1.26
E)$1.30

Question

Quizplus · Accepted Answer

Total asset turnover = $31,350/($2,715 + $22,407 + $3,908) = 1.08Every $1 in total assets generates $1.08 in sales.

A Firm Has Net Working Capital of $2,715,net Fixed Assets