Question

Flask Company reports net sales of $2,390 million; cost of goods sold of $2,250 million; net income of $450 million; and average total assets of $2,070 million. Compute its total asset turnover.

O 1.09.
O 1.15.
O 1.06.
O 0.87.
O 0.92

Answer 1

The total asset turnover of the Flask Company is 1.15.

option b is the correct

Step-by-step explanation:

The total asset turnover can be calculated by dividing the net sales by the average total assets.

Total Asset Turnover = Net Sales / Average Total Assets

Total Asset Turnover = $2,390 million / $2,070 million

Total Asset Turnover = 1.15