Lok Co. reports net sales of $5,856,480 for 2017 and $8,679,690 for 2018. End-of-year balances for total
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Lok Co. reports net sales of $5,856,480 for 2017 and $8,679,690 for 2018. End-of-year balances for total assets are 2016, $1,686,000; 2017, $1,800,000; and 2018, $1,982,000. (a) Compute Lok’s total asset turnover for 2017 and 2018. (b) Comment on Lok’s efficiency in using its assets if its competitors average a total asset turnover of 3.0.
Asset TurnoverAsset 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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Analysis comments Based on these calculations Lok turned ...View the full answer
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Related Book For 
Financial Accounting Information for Decisions
ISBN: 978-1259917042
9th edition
Authors: John J. Wild
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