A company had net sales of $1,539,000 in Year 1 and $1,496,000 in Year 2. Its average total assets were $810,000 for Year 1 and $800,000 for Year 2.

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 (1) Calculate the total asset turnover for each year.

 (2) Interpret and comment on the company’s efficiency in the use of its assets.

Answer rating: 100% (QA)

1 Total asset turnover for each year can be calculated as follows Total asset turnover Year ... View the full answer