If net sales is $100,000,total assets at the beginning of the year is $45,000,and total assets at end of the end of the year is $55,000,how much would be the ratio of sales to assets?

Question

Quizplus · Accepted Answer

The ratio of sales to assets is calculated as net sales divided by average total assets. Average total assets = ($45,000 + $55,000) / 2 = $50,000. Therefore, the ratio is $100,000 / $50,000 = 2.0.

If Net Sales Is $100,000,total Assets at the Beginning of the Year