Bounty Brands has hired your firm to evaluate its ratios relating to productivity. The CFO, Tyrion Lannister has provided you with following infromation about Bounty Brands. $52,474,000 50,567,000 29,265,000 6,183,000 26,195,000 14,198,000 6,894;000 4,637,000 Gross income Total sales Total credit sales Net income Cost of goods sold Total assets Average inventory Average receivables

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Chapter9: Responsibility Accounting And Decentralization
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Please compute the asset turnover ratio rounded to 3 decimal places
Bounty Brands has hired your firm to evaluate its ratios relating to productivity. The CFO, Tyrion Lannister has provided you with the
following infromation about Bounty Brands.
$52,474,000
50,567,000
29,265,000
6,183,000
26,195,000
14,198,000
6,894,000
Gross income
Total sales
Total credit sales
Net income
Cost of goods sold
Total assets
Average inventory
Average receivables
4,637,000
Transcribed Image Text:Bounty Brands has hired your firm to evaluate its ratios relating to productivity. The CFO, Tyrion Lannister has provided you with the following infromation about Bounty Brands. $52,474,000 50,567,000 29,265,000 6,183,000 26,195,000 14,198,000 6,894,000 Gross income Total sales Total credit sales Net income Cost of goods sold Total assets Average inventory Average receivables 4,637,000
c. Compute the asset turnover ratio. (Round your answer to 3 decimal places.)
Transcribed Image Text:c. Compute the asset turnover ratio. (Round your answer to 3 decimal places.)
Expert Solution
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Asset turnover ratio measures the efficiency of assets in generating revenue of the company.

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