Question

The asset turnover of Ryan Company is 7.2. The total assets of Ryan are $88,000. What were Ryan's net sales? A. $63,360 B. $633,600 C. $6,336 D. $633,000

Answer 1

Answer:

B. $633,600

Explanation:

The formula to calculate Asset turnover is:

A=R/S

A is asset revenue, R is revenue and S is assets

So you clear the R from the equation in order to solve for revenue:

R=A*S

insert the known values into the formula:

R=A*S

R=7.2*88,000

R=633,600

So the answer is B. $633,600