Question

Arshadi Corp.'s sales last year were $46,000, and its total assets were $22,000. What was its total assets turnover ratio (TATO)? Select the correct answer.

a. 4.79
b. 3.89
c. 5.69
d. 2.09
e. 2.99

Answer 1

total assets turnover ratio = 2.09

so correct answer is d. 2.09

Step-by-step explanation:

given data

sales last year = $46,000

total assets = $22,000

solution

we get here total assets turnover ratio that is express as

total assets turnover ratio =
`(Net\ sales)/(Total\ assets)` ..............1

put here value we get

total assets turnover ratio =
`(46000)/(22000)`

total assets turnover ratio = 2.09

so correct answer is d. 2.09