Question

Question 8

Using the financial information below, calculate company XYZ's asset turnover. Enter your answer as a number with two places of precision (i.e. 1.23).

$xid-100948877_1$

Answer 1

Assets Turnover = Revenue/Average Total Assets

Revenue= 42,000

Average Total Assets= Beginning Total Assets + Ending Total Assets

                                                                  2

                                            = 26,500+32,000

                                                       2

                                           =29,250

Assets Turnover = Revenue/Average Total Assets

                         =42,000/29,250

                        =1.44