The financial manager of a company needs to measure how efficiently the company's total assets are being used to generate sales. From the information given below, calculate the relevant ratio he needs for this purpose.
|
Cash
|
$220,000
|
|
Accounts receivable
|
1,800,000
|
|
Inventory
|
950,000
|
|
Plant and equipment
|
1,330,000
|
|
Sales
|
10,000,000
|
- Assets turnover ratio of 0.3
- Assets turnover ratio of 2.3
- Debt to assets ratio of 3.4
- Debt to assets ratio of 0.4