Assignment:
Company sales last year $400,000, year end total assets were $300,000. Average firm in the industry has a total assets turnover ratio (TATO) of 2.5. Need to bring the TATO down to industry average without affecting sales, by selling off excess assets. How much must the assets be reduced to bring the TATO to the industry average?
Provide complete and step by step solution for the question and show calculations and use formulas.