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3 years ago

12

The asset turnover of Ryan Company is 7.2. The total assets of Ryan are $88,000. Ryan's net sales were:

1 answer:

nikitadnepr [17]3 years ago

5 0

Let A be asset turnover, R revenue, and S assets. You already know the equation for asset turnover:
A = R/S

Since we need to calculate revenue, we need to modify the equation a bit:
R = A*S
R = 7.2*88000
R = 633,600

This means that Ryan's net sales (revenue) were $633,600.

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