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Anarel [89]
3 years ago
14

A firm has net working capital of $510, net fixed assets of $2,256, sales of $6,200, and current liabilities of $820. How many d

ollars worth of sales are generated from every $1 in total assets
Business
2 answers:
Pavel [41]3 years ago
8 0

Answer:

For every 1.73 dollars worth of sales are generated from every $1 in total Assets

Explanation:

The question asks us to calculate the Total Assets Turnover which measures the company's assets ability to generate sales

Given NWC = $510, NFA= $2256, Sales = $6200, CL = $820

TAT = Sales / Total Assets

Total Assets = NFA + CA

CA=?

Net working capital is the difference between a firms current assets with current liabilities

NWC = CA -CL

510    =CA - 820

CA = 510 + 820 = $1330

TA = 2256 +1330

     =$3586

TAT = Sales / Total Assets=6200/3586 = 1.7289/1.73

This means that for every 1.73 dollar worth of sales are generated from every $1 in total Assets

elena-s [515]3 years ago
4 0

Answer:

For every $1 of total assets, $1.73 worth of sales are generated.

Explanation:

The dollars worth of sales generated for every $1 of total assets can be calculated using the Total Assets Turnover formula.

Total assets turnover = Net Sales / Net Total Assets

To calculate this, we need to find the value of total assets.

The working capital is made up of current assets less current liabilities.

Thus, the current assets will be = Current liabilities + net working capital

Current Assets = 820 + 510 = 1330

Total Assets = 1330 + 2256  = $3586

So total assets turnover = 6200 / 3586  = 1.7289 rounded off to 1.73.

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3 years ago
Read 2 more answers
A firm is producing 1,000 units at a total cost of $5,000. If it were to increase production to 1,001 units, its total cost woul
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Answer:

c. Marginal cost is $8, and average total cost is $5.

Explanation:

Marginal cost of a firm is the cost difference in producing an additional unit of a firm's output. The extra amount result from the an extra unit of output produced. It is derived by calculating the difference between the total cost and dividing it by the difference in output  i.e  change in TC/ change in output

In the question, The change in TC is calculated as $5008 - $5000 = $8 and the change in quantity is 1001 - 1000 = 1

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on the other hand, Average total cost is the cost per unit of output i.e the cost of a commodity out of all the products  produced by a firm. it is calculated by dividing the total cost by the total number of output

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8 0
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Korolek [52]

Answer:

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