Asset turnover ratio: It is a type of an efficiency ratio which measures the ability of an entity to generate sales from its assets by making a comparison of the net sales with average of total assets. This ratio basically helps to understand how the company makes the use of assets appropriately to generate its sales. Return on assets: This ratio helps the company to find the percentage of profit in relation to its overall resources available. It can be calculated by dividing the net income and total assets. To determine the relationship of the asset turnover to the return on assets.

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Wanting to finalize a sale before year-end, on December 29, WR Outfitters sold to Bob a warehouse and the land for $140,000. Note: Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount. a. What is Bob's basis in the warehouse and in the land if the appraised value of the warehouse was $100,750 and the appraised value of the land was $115,000? Bob's Basis Warehouse Land

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Chapter 24, Problem 26Q

To determine

Asset turnover ratio: It is a type of an efficiency ratio which measures the ability of an entity to generate sales from its assets by making a comparison of the net sales with average of total assets. This ratio basically helps to understand how the company makes the use of assets appropriately to generate its sales.

Return on assets: This ratio helps the company to find the percentage of profit in relation to its overall resources available. It can be calculated by dividing the net income and total assets.

To determine the relationship of the asset turnover to the return on assets.

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