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Anna007 [38]
3 years ago
7

A company had average total assets of $937,000. Its gross sales were $1, 099,000 and its net sales were $960,000. The company's

total asset turnover equals:________ a) 1.14. b) 1.02. c) 1.17. d) 0.85. e) 0.98.
Business
1 answer:
Sergio039 [100]3 years ago
3 0

Answer:

The answer is 1.02

Explanation:

Asset turnover is an effiency ratio and it measures the how efficient a company is using its asset to generate profit.

The formula is Revenue or net sales / total asset

Revenue or net sales = $960,000

Total asset = $937,000

$960,000/$937,000

= 1.02

This ratio means that for every dollar in assets, the company generates $1.02

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