A company had net sales of $230,000 for 2010 and $288,000 for 2011. The company’s average total assets for 2010 were $150,000 and $180,000 for 2011. Calculate the total asset turnover for each year and comment on this company's efficiency of using its assets. 2010: 2011: Comment on the company’s efficiency in the use of its assets.
A company had net sales of $230,000 for 2010 and $288,000 for 2011. The company’s average total assets for 2010 were $150,000 and $180,000 for 2011. Calculate the total asset turnover for each year and comment on this company's efficiency of using its assets. 2010: 2011: Comment on the company’s efficiency in the use of its assets.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A company had net sales of $230,000 for 2010 and $288,000 for 2011. The company’s average total assets for 2010 were $150,000 and $180,000 for 2011. Calculate the total asset turnover for each year and comment on this company's efficiency of using its assets.
2010:
2011:
Comment on the company’s efficiency in the use of its assets.
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