Question
The financial manager of a company needs to measure how efficiently the companys total assets are being used to generate sales. From the information given
The financial manager of a company needs to measure
how efficiently the companys total assets are being used to generate sales. From the information given below, calculate the relevant ratio he needs for this purpose.
| Cash | $220,000 |
| Accounts receivable | 1,800,000 |
| Inventory | 950,000 |
| Plant and equipment | 1,330,000 |
| Sales | 10,000,000 |
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Assets turnover ratio of 0.3
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Assets turnover ratio of 2.3
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Debt to assets ratio of 0.4
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Debt to assets ratio of 3.4
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Financial Markets and Institutions
Authors: Jeff Madura
11th Edition
1133947875, 9781305143005, 1305143000, 978-1133947875
