Accounting: Tools for Business Decision Making, 5th Edition

Published by Wiley
ISBN 10: 1118128168
ISBN 13: 978-1-11812-816-9

Chapter 13 - Financial Analysis: The Big Picture - Questions: 15

Answer

a) Assets Turnover Ratio = Net Sales/Average Total Assets b) Inventory Turnover Ratio= Cost of Goods sold/Average Inventory

Work Step by Step

a) To measure how efficient is a company in using its assets to produce sales. b) To measure how near to sale is the inventory in hand.
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