At the end of 2017, Stacky Corp. had $500,000 in liabilities and a debt-to-assets ratio of 0.5. For 2017, Stacky had an asset tu

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mihalych1998 [28]

2 years ago

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At the end of 2017, Stacky Corp. had $500,000 in liabilities and a debt-to-assets ratio of 0.5. For 2017, Stacky had an asset tu

rnover of 3.0. What were annual sales At the end of 2017, Stacky Corp. had $500,000 in liabilities and a debt-to-assets ratio of 0.5. For 2017, Stacky had an asset turnover of 3.0. What were annual sales for Stacky in 2017

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1 answer:

miv72 [106K] · Answer 1 · 2023-07-05T21:43:53+03:00

The annual sales for Stacky Corp. at for the year 2017 will amount to $3,000,000.

<h3>What is annual sales?</h3>

The total amount of products sold throughout a financial year by a corporation is known as the annual sales of such corporation.

Using the given information, it can be ascertained that:

Debt-to-Equity Ratio of 0.5 and liabilities of $500,000 means that firm's assets will be, $1,000,000. Calculating further,

$\rm Asset\ Turnover\ Ratio = \dfrac{Sales}{Assets}$

Using the given formula, it can be ascertained that the total annual sales of the Stacky Corp for the year 2017 will be $3,000,000.

Hence, the annual sales of the corporation is calculated as above.

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