Respuesta :
The company's total asset turnover is equal to = 1.18
What is average total assets?
Average total assets are the assets that were recorded on a company's balance sheet on average at the end of the current year and the year before.
What is net sales?
Net sales are the total of a company's gross sales less any discounts, returns, and allowances. External transparency of net sales computations is not always present. They are frequently accounted for when top line revenues are reported on the income statement.
What is Gross sales?
Gross sales are the sum of all transactions made for sales within a specific time frame. Deductions and cost-of-sales are not included in this (like returns or allowance). The total sales revenue for a particular time period—monthly, quarterly, or annually—must be added together to determine an organization's gross sales.
According to the given information:
The total assets that the company had = $889000
Gross sales = $1200000
Net sales = $1048000
The total asset turnover can be determined by dividing the net sales with average total assets. Here, the average total assets are $889000 and net sales is $1048000.
Total asset turnover = net sales / average total assets
= 1048000/ 889000
=1.178
The company's total asset turnover is equal to = 1.178
= 1.18
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