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    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

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