📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!

  • google app store apple app store
  • ✖

      Question

      Determine a firm's total assets turnover, if its net

      profits margin is 8%, total assets are 8,00,000 and the return on investment is 14%
      A 2.05 Correct Answer Incorrect Answer
      B 4.00 Correct Answer Incorrect Answer
      C 1.75 Correct Answer Incorrect Answer
      D 2.00 Correct Answer Incorrect Answer

      Solution

      Total assets turnover = Turnover / Average Total Assets 14,00,000 / 800,000 =1.75 Turnover can be figured out as we have net profits margins given in question which is nothing but Net profit/ Turnover * 100 So first we need to find net profit: Net profit = 8,00,000 (total assets) * 14% (Return on investment) = 1,12,000 Turnover = 1,12,000 (Net profit) / 8%(Net profit margin) =14,00,000

      Practice Next
      ask-question