PE 17-8B Net sales to assets

A company reports the following:

Net sales $4,400,000
Average total assets 2,000,000

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   =  $4,400,000 ÷ $2,000,000 Ratio of Net Sales to Assets   =  2.2