Arshadi Corp.'s sales last year were $52,000, and its total assets were $22,000. What was its total assets turnover ratio (TATO) ?

Question

Business

Xander Orr

9 April, 15:31

Arshadi Corp.'s sales last year were $52,000, and its total assets were $22,000. What was its total assets turnover ratio (TATO) ?

+1

Answers (1)

Know the Answer?

Alexandria Gilbert · Answer 1

The correct answer is 2.36 times.

Explanation:

According to the scenario, Given data are as follows:

Total sales (turnover) = $52,000

Total assets = $22,000

So, Total assets turnover ratio (TATO) can be calculated as follows:

Total Assets Turnover Ratio = Turnover / Total assets

TATO = $52,000 / $22,000

TATO = 2.36 times.

Hence, the correct answer is 2.36 times.