The sales projection for your retail business is $650,000. The industry average for the asset turnover ratio

Question:

The sales projection for your retail business is $650,000. The industry average for the ratio is 5. How much inventory (total assets) should you plan to stock?

Asset Turnover
Asset turnover is sales divided by total assets. Important for comparison over time and to other companies of the same industry. This is a standard business ratio.