Question

Vatican Limited has current assets of $350M, fixed assets of

$550M, and a total asset turnover of 1.8. What is the
company's sales figure?

Answer 1

To determine the sales figure for Vatican Limited, total assets ($900M) are multiplied by the total asset turnover (1.8), which results in a sales figure of $1620M.

Step-by-step explanation:

To calculate the sales figure for Vatican Limited, we will use the given total asset turnover ratio. The total asset turnover ratio is calculated by dividing sales by total assets. The total assets of Vatican Limited are the sum of its current assets ($350M) and fixed assets ($550M), which equals $900M.

The total asset turnover ratio is given as 1.8. To find the sales, we multiply the total assets by the total asset turnover ratio:

• Sales = Total Assets × Total Asset Turnover
• Sales = $900M × 1.8
• Sales = $1620M

Therefore, the sales figure for Vatican Limited is $1620M.