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laila [671]
3 years ago
6

During 2020, Whispering Winds Corp. reported net sales of $4,502,400 and net income of $1,510,000. Its balance sheet reported av

erage total assets of $1,680,000. Calculate the asset turnover. (Round answer to 2 decimal places, e.g. 1.25.)
Business
1 answer:
amid [387]3 years ago
3 0

Answer:

2.68

Explanation:

Data provided in the question:

Reported net sales = $4,502,400

Reported net income = $1,510,000

Reported average total assets = $1,680,000

Now,

The the asset turnover is calculated using the formula as

Asset turnover = ( Net sales ) ÷ ( Average total assets )

or

Asset turnover = $4,502,400 ÷ $1,680,000

or

Asset turnover = 2.68 times

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