Question

Lok Co. reports net sales of $5,856,480 for 2016 and $8,679,690 for 2017. End-of-year balances for total assets are 2015, $1,686,000; 2016, $1,800,000; and 2017, $1,982,000. (a) Compute Lok's total asset turnover for 2016 and 2017.

Answer 1

2016 = $3.36

2017 = $4.59

Step-by-step explanation:

The solution of total assets turnover is shown below:-

Particulars 2016 2017

Total assets in the beginning $1,686,000 $1,800,000

Total assets at the end $1,800,000 $1,982,000

Average assets $1,743,000 $1,891,000

(Assets in the beginning + Assets at end) ÷ 2

Sales revenue $5,856,480 $8,679,690

Total assets turnover $3.36 $4.59

(Sales revenue ÷ Average Total assets)