The asset turnover of Ryan Company is 7.2. The total assets of Ryan are $88,000. Ryan's net sales were:

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Mathematics

Boomhauer

15 March, 19:03

The asset turnover of Ryan Company is 7.2. The total assets of Ryan are $88,000. Ryan's net sales were:

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Answers (1)

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Josue Peterson · Answer 1

Let A be asset turnover, R revenue, and S assets. You already know the equation for asset turnover:

A = R/S

Since we need to calculate revenue, we need to modify the equation a bit:

R = A*S

R = 7.2*88000

R = 633,600

This means that Ryan's net sales (revenue) were $633,600.