객관식
XYZ Company had net sales of \$500,000 and COGS of \$320,000. If the beginning balance of Total Assets was \$300,000 and the ending balance in Total Assets was \$400,000, what is the Total Asset Turnover ratio?
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14. Financial Statement Analysis
Ratios: Total Asset Turnover
Multiple Choice
Which of the following best describes how the Total Asset Turnover ratio is calculated?
A
Net Sales divided by Total Liabilities
B
Net Sales divided by Average Total Assets
C
Net Income divided by Average Total Assets
D
Net Income divided by Total Equity
검증된 단계별 안내1
Understand the Total Asset Turnover ratio: This ratio measures how efficiently a company uses its assets to generate sales. It is calculated by dividing Net Sales by Average Total Assets.
Identify the numerator: The numerator in the formula is Net Sales, which represents the revenue generated from the company's core operations.
Identify the denominator: The denominator is Average Total Assets, which is calculated by taking the sum of the beginning and ending total assets for a period and dividing by 2.
Write the formula: The Total Asset Turnover ratio formula is:
Compare the options provided: Match the correct formula (Net Sales divided by Average Total Assets) with the given choices to identify the correct answer.
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