Food stuff, a supermarket chain, reported the following data in its financial st
ID: 2607890 • Letter: F
Question
Food stuff, a supermarket chain, reported the following data in its financial statements for a recent year:aming resource from Cengage Learning Assignment/takeAssignmentMain do?invoker assignments&takeAssignment; SessionLocator-assignment-take&inprogress; false Calculator Ratio of Sales to Assets Food Stuff, a supermarket chain, reported the following data in its financial statements for a recent year $8,189,000 2,200,000 2,110,000 Total revenue Total assets at end of year Total assets at beginning of year Compute the ratio of sales to assets. Round to one decimal place
Explanation / Answer
Sales to asset ration : total sales /average assets value
= 8,189,000/2,155,000
= 3.8 times
Computation for above values :
a) Total Sales i.e. revenue is $ 8,189,000
b) Total Assets we need average asset for the year is :
Average assets = (Assets year beggining balance + Assets year Ending balance) / 2
= (2,200,000+2,110,000)/2
= $2,155,000