Question

Consider the following balance sheet for Go The Distance Trading Cards. Sales were $1,162,184.00 in the past year. Go The Distance Trading Cards Balance Sheet, 2018: Account Amount Assets: Current Assets $75,000 Net fixed Assets (Net PPE) $225,000 TOTAL ASSETS $300,000 Liabilities and Shareholder Equity Current Liabilities $50,000 Long-term liabilities (Long term debt) $100,000 TOTAL LIABILITIES $150,000 Shareholder equity $150,000 TOTAL LIABILITIES AND EQUITY $300,000 What is the total asset turnover for this firm?

Answer 1

Ans. Total assets Turnover= 3.87

Step-by-step explanation:

Hi, well all we need to do is use the following formula.

`Total AssetsTurnover=(NetSales)/(AverageTotal Assets)`

Since there are no other values for assets (with what to find the average), we should just use $300,000. So the final answer to this question is:

`Total AssetsTurnover=(1,162,184)/(300,000) =3.87`

So, the total assets turnover for this company is 3.87 times a year.

Best of luck