Answer:
1.08 dollars of sales are generated from every $1 in total assets.
Explanation:
Calculate Current asset from net working capital formula:
Net Working capital = Current Assets - Current Liabilities
$2,715 = Current Assets - $3,908
Current Assets = $2,715 + $3,908
Current Assets = $6,623
Now calculate Total Assets:
Total Assets = Fixed Asset + Current Assets
Total Assets = $22,407 + $6,623
Total Assets = $29,030
We can calculate dollars' worth of sales are generated from every $1 in total assets by following formula:
Asset turnover ratio = Net Sales / Total Assets
Asset turnover ratio = $31,350 / $29,030 = 1.08
