Lok Company reports net sales of $4,723,000 for Year 2 and $8.971,000 for Year 3. End-of-year...

 

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Lok Company reports net sales of $4,723,000 for Year 2 and $8.971,000 for Year 3. End-of-year balances for total assets are Year 1. $1,586,000; Year 2. $1,844,000; and Year 3, $1,985,000. (1) Compute Lok's total asset turnover for Year 2 and Year 3. (2) Lok's competitor has a Total Asset Turnover of 3.0 during Year 3. Is Lok performing better or worse than its competitor on the basis of total asset turnover? Lok Company reports net sales of $4,723,000 for Year 2 and $8.971,000 for Year 3. End-of-year balances for total assets are Year 1. $1,586,000; Year 2. $1,844,000; and Year 3, $1,985,000. (1) Compute Lok's total asset turnover for Year 2 and Year 3. (2) Lok's competitor has a Total Asset Turnover of 3.0 during Year 3. Is Lok performing better or worse than its competitor on the basis of total asset turnover?

Answer rating: 100% (QA)

1 Loks Total Asset Turnover Total Asset Turnover Ratio measures how efficiently a company uses its a... View the full answer