Fundamental Accounting Principles 22th Edition by John Wild ,Ken Shaw,Barbara Chiappetta

Exercise 12

Lok Co. reports net sales of $5,856,480 for 2014 and $8,679,690 for 2015. End-of-year balances for total assets are 2013, $1,686,000; 2014, $1,800,000; and 2015, $1,982,000. ( a ) Compute Lok's total asset turnover for 2014 and 2015. ( b ) Comment on Lok's efficiency in using its assets if its competitors average a total asset turnover of 3.0.