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The financial manager of a company needs to measurenhow efficiently the companys total assets are being used to generate sales. From the information given below,
The financial manager of a company needs to measurenhow 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 |
?Debt to assets ratio of 3.4
?Assets turnover ratio of 0.3
?Debt to assets ratio of 0.4
?Assets turnover ratio of 2.3
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