The following information is provided for Cullumber Company and Bramble Corporation.(in $ millions)Cullumber Company Bramble CorporationNet income 2022 $125 $370 Net sales 20221310 4520 Total assets 12/31/201070 2040 Total assets 12/31/211055 3150 Total assets 12/31/221170 4100 What is Cullumber's asset turnover for 2022?

Assets turnover = Net sales / Average Total assets where, Average Total assets = (Beginning Total assets + Ending Total assets ) / 2Average Total assets for 2022 = ($1055+$1170) / 2= $1,112.50 Cullumber's asset turnover for 2022 = $1310/$1,112.50 = 1.18 times

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FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The following information is provided for Cullumber Company and Bramble Corporation.

(in $ millions)	Cullumber Company
Net income 2022	$125	$370
Net sales 2022	1310	4520
Total assets 12/31/20	1070	2040
Total assets 12/31/21	1055	3150
Total assets 12/31/22	1170	4100

What is Cullumber's asset turnover for 2022?

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