Register
What are the annual sales for a firm with $400,000 in debt, a total debt ratio of 0.4, and an asset turnover of 3
213k views
3 votes
What are the annual sales for a firm with $400,000 in debt, a total debt ratio of 0.4, and an asset turnover of 3

User Kevinykuo
by
4.7k points

1 Answer

1 vote

Answer:

$3,000,000

Step-by-step explanation:

The first step is to calculate the assets

= debt / Total debt ratio

= 400,000/0.4

= 1,000,000

Therefore the annual sales for the firm can be calculated as follows

= 3 × 1,000,000

= $3,000,000

User Boraseoksoon
by
4.9k points
Ask a Question
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

5.6m questions

7.3m answers

Other Questions

On august 1 the darius co. purchased a photocopy machine for $8,000. the estimated annual depreciation on the machine is $1,680. if the company prepares annual financial statements on december 31, the
When president obama was elected, the u.s. economy was in trouble, and has slid into a recession. consumer spending was low and getting worse. in an effort to stop the decline, president obama proposed
Ensuring that an individual is who they claim to be is the function of _____. select one: a. confidentiality b. authorization c. availability d. authentication e. nonrepudiation
The current market price for good y is above the equilibrium price, and then the price of a subsitute good, x, increases. the demand curve for good y shifts as a result. what is the likely outcome of the
How do i figure out a months ending capital
Link Copied!