The following data are from annual reports of Justin's Jewellery Company: Required: Compute Justin's total asset turnover

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The following data are from annual reports of Justin's Jewellery Company:

Required:Compute Justin's total asset turnover ratio and its return on assets for 2016 and 2017. What do these results suggest to you about Justin's Jewelry Company'?

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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Related Book For answer-question

Financial Accounting

ISBN: 978-1259105692

6th Canadian edition

Authors: Robert Libby, Patricia Libby, Daniel G Short, George Kanaan, Maureen Sterling

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Question Posted: Dec 04, 2019 10:15 AM

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The following data are from annual reports of Justin's Jewellery Company: Required: Compute Justin's total asset turnover

Question:

2017 2016 2015 $ 60,000 $ 50,000 $ 40,000 Total assets Total liabilities Total shareholders' equity 12,000 10,000 5,000 48,000 40,000 35,000 Sales Net earnings 154,000 144,000 130,000 25,000 5,000 3,800

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50000 60000 2 40000 50000 2 The decrease in the asset turnover ratio su...View the full answer

Financial Accounting

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