Bounty Brands has hired your firm to evaluate its ratios relating to productivity. The CFO, Tyrion Lannister has provided you with following infromation about Bounty Brands. $52,474,000 50,567,000 29,265,000 6,183,000 26,195,000 14,198,000 6,894;000 4,637,000 Gross income Total sales Total credit sales Net income Cost of goods sold Total assets Average inventory Average receivables
Bounty Brands has hired your firm to evaluate its ratios relating to productivity. The CFO, Tyrion Lannister has provided you with following infromation about Bounty Brands. $52,474,000 50,567,000 29,265,000 6,183,000 26,195,000 14,198,000 6,894;000 4,637,000 Gross income Total sales Total credit sales Net income Cost of goods sold Total assets Average inventory Average receivables
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Question
Please compute the asset turnover ratio rounded to 3 decimal places

Transcribed Image Text:Bounty Brands has hired your firm to evaluate its ratios relating to productivity. The CFO, Tyrion Lannister has provided you with the
following infromation about Bounty Brands.
$52,474,000
50,567,000
29,265,000
6,183,000
26,195,000
14,198,000
6,894,000
Gross income
Total sales
Total credit sales
Net income
Cost of goods sold
Total assets
Average inventory
Average receivables
4,637,000

Transcribed Image Text:c. Compute the asset turnover ratio. (Round your answer to 3 decimal places.)
Expert Solution

Step 1
Asset turnover ratio measures the efficiency of assets in generating revenue of the company.
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