Question

At the beginning of the year, Carson Company reported total current assets of $658,000 and total assets of $2,450,000. Carson reported sales of $6,000,000 for the year. At the end of the year, Carson reported total current assets of $790,000 and total assets of $2,800,000. Compute the total asset turnover.

Answer 1

Answer:

The total asset turnover is 2.14 times

Explanation:

Total asset turnover = Sales / Total Assets

                                  = $6,000,000 / $2,800,000

                                  = 2.14 times

Consider year end balances only as this ratio is culculated at end of the financial period

Conclusion :

The total asset turnover is 2.14 times