Question

Flask Company reports net sales of $2,190 million; cost of goods sold of $2,060 million; net income of $410 million; and average total assets of $1,960 million. Compute its total asset turnover.

Answer 1

1.12

Step-by-step explanation:

Flask company has a net sales of $2,190 million

The cost of goods sold is $2,060 million

Net income is $410 million

Average total assets is $1,960

Therefore it's total assets turnover can be calculated as follows

= sales/Total assets turnover

= $2,190 million/$1,960 million

= 1.12