Question

Shelli's Ski Super has sales of $670, net fixed assets of $210, total assets of $305, and current assets of $25. What is the total asset turnover ratio for the business?

Answer 1

2.20

Step-by-step explanation:

The formula to compute the total assets turnover ratio is shown below:

Total asset turnover = (Sales revenue ÷ Total assets)

= ($670 ÷ $305)

= 2.20

We simply divide the sales revenue by the total assets, so that the total asset turnover ratio can be computed

All other information which is given is not relevant. Hence, ignored it