Answer:
Assets turnover ratio= 1.64 times
Explanation:
The asset turnover is the he amount of sales generated by one dollar invested in asset. it measures how efficient the business is in generating sales using assets
Assets turnover ratio = net sales / Average assets
<em>Asset at the beginning of year 2016</em>
=26,000 + 56,000
+ 79,000
+ 8,000 + 180,000
= 349
,000
<em>Asset at the end of year 2016</em>
$28,000 + 58,000 + 76,000 + 14,000
+ 11,000= 187
,000
Average assets = Opening value of asset+ closing value of assets/2
= 349
,000 + 187
,000= 268
,000
Assets turnover ratio = net sales / Average assets
=440000/268,000= 1.64 times
Assets turnover ratio= 1.64 times
Total assets =
