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14 April, 20:44

Assume the Residential Division of KappyKappy Faucets had the following results last year: Net sales revenue $16,320,000 Operating income 6,528,000 Average total assets 5,100,000 Management's target rate of return 16% What is the division's asset turnover ratio?

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  1. 15 April, 00:39
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    3.20

    Explanation:

    The computation of the asset turnover ratio is shown below:

    Total asset turnover = (Net Sales revenue : Average Total assets)

    = ($16,320,000 : $5,100,000)

    = 3.20

    It shows a ratio between the net sales revenue and the average total assets.

    All other information which is given is not relevant. Hence, ignored it
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