Question
Calculate Total asset turnover ratio of the
company? Read the following information to answer the below questions:  Net Sales = 40,00,000 (20 % GP Element) out of which 40% is on credit. Opening Inventories were 60 % of closing inventories. Opening Receivables are 120,000. ÂSolution
Total asset turnover ratio = Sales/Total Assets 40,00,000 / 23,34,000 =1.71 Total assets: Building + Plant & Machinery+ Land + Stock + Debtors + Cash 5,00,000+4,50,000+6,00,000+4,20,000+3,40,000+24,000 =23,34,000
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