Analyze ABC Depot The ABC Depot reported the following data (in millions) in its recent financial statements: Total sales Total assets: Beginning of year End of year Year 2 Year 2 $115,960 81,400 75,800 97,000 81,400 a. Determine the asset turnover ratio for ABC Depot for Year 2 and Year 1. Round to one decimal place. Year 1 Year 1 Asset turnover ratio b. What does an asset turnover ratio indicate? $125,760 1. Effectiveness in the use of assets to generate revenue. 2. Effective use of revenue to create assets. 3. Effective use of assets to reduce cost. 4. Effective use of assets to increase assets.

The ABC Depot reported the following data (in millions) in its recent financial statements: a. Determine the asset turnover ratio for ABC Depot for Year 2 and Year 1 . Round to one b. What does an asset turnover ratio indicate? 1. Effectiveness in the use of assets to generate revenue. 2. Effective use of revenue to create assets. 3. Effective use of assets to reduce cost. 4. Effective use of assets to increase assets