Please refer to the picture:

1) 12/31/98 assets are the ending assets of (1998/1999) and the beginning assets of (1998/1999)? Which one? Average total assets = [(Beginning assets + ending assets)/2].

Activity 8 RATIO ANALYSIS Asset Turnover Purpose: Understand the information provided by the asset turnover ratio. - Identify the expected range and whether an increasing or decreasing trend is preferred. The asset turnover ratio compares net sales to total assets. This ratio evaluates how efficiently assets are used to produce net sales. It is one measure of sales volume. It is a measure of profitability. ASSET TURNOVER= Net sales Average total assets 1. Average total assets = [(beginning assets + ending assets)/2). 12/31/98 assets are the ending assets of (1998 / 1999) and the beginning assets of (1998 / 1999). ($ in 000s) GAP INC GENERAL MOTORS (GM) HOME DEPOT ORACLE Net sales ye 1/30/99 $9.054.462 ye 12/3198 $161.315.000 fse i31799 $30.219.000 ye 5/31/99 $8,827.252 Total assets 1/30/99 $3.963.919 12/31/98 $257.389.000 1/31/99 $13,465.000 5/31/99 $7.259,654 1/30/98 Total assets $3.337.502 Source: Disclosure, Inc., Compact D/SEC, 2000. 12/31/97 $231.752.000 1/31/98 $11.229.000 5/31/98 $5,819,011