Bountiful company had sales of $650,000 and cost of goods sold of $200,000 during a year. the total assets balance at the beginning of the year was $175,000 and at the end of the year was $167,000. calculate the asset turnover ratio.

Question

Brooke Tate

Business

11 March, 00:42

Bountiful company had sales of $650,000 and cost of goods sold of $200,000 during a year. the total assets balance at the beginning of the year was $175,000 and at the end of the year was $167,000. calculate the asset turnover ratio.

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Hope Levy · Answer 1

The asset turnover ratio is 3.80. The asset turnover ratio is a number that shows how much revenue is being earned for every dollar the company has spent on assets. Asset turnover ratio=Net revenue/Average total Assets Thus, by applying the Formula we get Asset turnover ratio=3.80