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Hunter-Best [27]
3 years ago
13

Bonner Corp.'s sales last year were $415,000, and its year-end total assets were $355,000. The average firm in the industry has

a total assets turnover ratio (TATO) of 2.4. Bonner's new CFO believes the firm has excess assets that can be sold so as to bring the TATO down to the industry average without affecting sales. By how much must the assets be reduced to bring the TATO to the industry average, holding sales constant?
Business
1 answer:
koban [17]3 years ago
5 0

Answer:

$182,083

Explanation:

The computation of the total assets by considering the total assets turnover is shown below:

Total assets turnover = Sales ÷ total assets

2.4 = $415,000  ÷ total assets

So, the total assets equal to

= $415,000 ÷ 2.4

= $172,917

So, the assets is reduced by

= Year-end total assets - calculated assets

= $355,000 - $172,917

= $182,083

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1 year ago
Verify why the farmers' credit union chose to increase Farm B's line of credit but not Farm A's in the following scenario:
Shkiper50 [21]

Answer:

see below

Explanation:

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Anastasy [175]
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3 years ago
Bronson has shopped at several toy stores. However, he really likes The Toy Corner because of the broad assortment offered for d
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Answer:

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