Asked by Juana Jacal on Jun 17, 2024

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Carducci Corporation reported net sales of $3.6 million,average total assets of $1.1 million,and net income of $847,000.The total asset turnover is:

A) 0.31 times.
B) 3.27 times.
C) 4.30 times.
D) 2.27 times.
E) 0.77 times.

Total Asset Turnover

A financial ratio that measures the efficiency of a company's use of its assets to generate sales revenue.

Average Total Assets

A measure calculated by averaging the total assets a company has at the beginning and end of the financial period, used to evaluate asset efficiency.

Net Sales

The amount of a company's gross sales minus its returns, allowances, and discounts.

  • Ascertain the average inventory figures, compute the turnover ratio for receivables, and assess the total assets' turnover using available information.
  • Process and interpret the metrics of dividend yield, profit margin, total asset turnover, and return on total assets.
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KC
Killian CarlesJun 19, 2024
Final Answer :
B
Explanation :
Total asset turnover is calculated as net sales divided by average total assets. So, $3.6 million / $1.1 million = 3.27 times.