Food stuff a supermarket chain reported the following data i

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

Solution

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