During 2014, Otaki Corporation reported net sales of $5,200,000 and net income of $1,500,000. Its balance sheet

Question:

During 2014, Otaki Corporation reported net sales of $5,200,000 and net income of $1,500,000. Its balance sheet reported average total assets of $1,600,000.

Instructions

Calculate the asset turnover ratio.

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. Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...