Chapter 9, Problem 9.14SE

To determine

Asset turnover: It is a ratio that measures the productive capacity of the assets to generate the sales revenue for the company. Thus, it shows the relationship between the net sales and the average total assets. The following is the formula to calculate the ratio:

$\text{Asset turnover }=\frac{\text{Net}\text{Sales}}{\text{Average total assets}}$

To Compute: the asset turnover for the Company B for the year ended May 31, 2018.