Chapter 10, Problem S10.14SE

To determine

Assets Turnover ratio:

Assets turnover ratio is a measure that suggests that number of times the assets are converted in to sales. The higher the ratio, the higher will be efficiency of the firm in converting its assets and doing business.

Assets turnover ratio is computed by dividing the net sales of the period by the average assets employed in the business. The average assets employed is computed by taking the average of beginning assets employed and ending assets employed in the business during the period.

TheComputation of Assets turnover ratio of the business.