PE 17-8A Net sales to assets

A company reports the following:

Net sales $1,800,000
Average total assets 1,125,000

Determine the ratio of net sales to assets.

Answer:






Ratio of Net Sales to Assets   =  Net Sales ÷ Average Total Assets 
Ratio of Net Sales to Assets   =  $1,800,000 ÷ $1,125,000 
Ratio of Net Sales to Assets   =  1.6