Question

Flask Company reports net sales of $3,010 million; cost of goods sold of $2,650 million; net income of $530 million; and average total assets of $2,510 million. Compute its total asset turnover.

Answer 1

Total assets turnover = 1.2 times

Step-by-step explanation:

Total assets turnover tells the efficiency of a firm's assets in generating revenue.

The formula for total assets turnover is net sales over average total assets.

Total assets turnover = Sales / average total assets

Total assets turnover = 3010 / 2510 = 1.199 or 1.2 times