1] Aardvaark & Co. has sales of $291,200, cost of goods sold of $163,300, net pr

Question

1] Aardvaark & Co. has sales of $291,200, cost of goods sold of $163,300, net profit of $11,360, net fixed assets of $154,500, and current assets of $89,500. What is the total asset turnover rate? 1] Aardvaark & Co. has sales of $291,200, cost of goods sold of $163,300, net profit of $11,360, net fixed assets of $154,500, and current assets of $89,500. What is the total asset turnover rate? 1] Aardvaark & Co. has sales of $291,200, cost of goods sold of $163,300, net profit of $11,360, net fixed assets of $154,500, and current assets of $89,500. What is the total asset turnover rate?

Explanation / Answer

Fixed Asset=USD 154,500

Current Asset=USD 89,500

Total Asset

= Current asset + Fixed asset

= USD 89,500 + USD 154,500

=USD 245,000

Sales= USD 291,200

Total Asset Turn-over

= Sales/ Total Asset

= USD 291,200 / USD 245,000

=1.1886

(Rounded to 2 decimals 1.19)

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