Computing and Explaining the Total Asset Turnover Ratio The following data are from annual reports of Jens

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Computing and Explaining the Total Ratio
The following data are from annual reports of Jen€™s Jewelry Company:

2012 2011 2011 2010 Total assets Total liabilities Total stockholders' equity Sales revenue Net income $ 60,000 14,000 $

Compute Jen€™s total asset turnover ratio for 2012 and 2011. What do these results suggest to you about Jen€™s JewelryCompany?

Asset Turnover
Asset turnover is sales divided by total assets. Important for comparison over time and to other companies of the same industry. This is a standard business ratio.

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Financial Accounting

ISBN: 978-0078111020

7th Edition

Authors: LibbyShort

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Question Posted: Dec 12, 2011 07:27 AM

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Computing and Explaining the Total Asset Turnover Ratio The following data are from annual reports of Jens

Question:

2012 2011 2011 2010 Total assets Total liabilities Total stockholders' equity Sales revenue Net income $ 60,000 14,000 $ 53,000 $ 41,000 11,000 42,000 151,000 40,000 6,000 35,000 132,000 25,000 46,000 163,000 51.000

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2012 2011 Total Asset Sales 163000 289 151000 321 Turnover Aver...View the full answer

Financial Accounting

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