Essay
A firm has sales of $5 million, average total assets of $1.6 million, average fixed assets of $1 million, and average current liabilities of $300,000.Given this information, answer the following about the firm's efficiency:
Calculate asset turnover, fixed asset turnover, and NWC turnover ratios.
Can the fixed asset turnover be considered appropriate and yet the total asset turnover be considered low by industry standards? How?
What in general might improve NWC turnover?
Correct Answer:
Verified
a.
=
This can occur if the average level...View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Correct Answer:
Verified
=
This can occur if the average level...
View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Q8: _ are those expected to be turned
Q9: What are some potential pitfalls of ratio
Q40: A firm with zero net working capital
Q41: A firm's net profit margin when ignoring
Q43: What is the market price of a
Q46: When a firm's debt-equity ratio is 1.0,
Q47: How would you interpret an interval measure
Q48: Last year's asset turnover ratio was 2.0.Sales
Q49: Zulu Corporation had total assets of $475
Q67: Other things equal,an increase in average accounts