Jim Kovacs Company makes supplies for schools. Sales in 2015 were $4,000,000. Assets were as follows:

Cash................................................$ 100,000
Accounts receivable .......... .  . ........ .800,000
Inventory .................... . .. ... . . .. ..... .400,000
Net plant and equipment....................500,000
Total assets ................ . ..............$1 ,800,000

a. Compute the following:
1. Accounts receivable turnover
2. Inventory turnover
3. Capital asset turnover
4. Total asset turnover

b. In 2016, sales increased to $5,000,000 and the assets for that year were as follows:

Cash................................................$ 100,000
Accounts receivable .... .. ...... .. .. ... .900,000
Inventory .................... . ....................975,000
Net plant and equipment...................550,000
Total assets ................ .................$2,525,000

Compute the same four ratios as in part a.

Indicate if there is an improvement or decline in total asset turnover, and based on the other ratios, explain the reasons this development has taken place.