Question

Flask company reports net sales of $3,360 million; cost of goods sold of $2,860 million; net income of $570 million; and average total assets of $2,660 million. compute its total asset turnover. multiple choice

A. 1.08.
B. 1.26.
C. 1.17.
D. 0.79.
E. 0.93.

Answer 1

The total asset turnover for Flask company is calculated by dividing the net sales by the average total assets, which equals B. 1.26.

Step-by-step explanation:

To calculate the total asset turnover, you would divide the net sales by the average total assets. For Flask company, this would be $3,360 million in net sales divided by the $2,660 million in average total assets.

The calculation would look like this: Total Asset Turnover = Net Sales / Average Total Assets = $3,360 million / $2,660 million = 1.26.

Based on this calculation, the correct answer to the question is B. 1.26.