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(a)

In its 2011 annual report, Campbell Soup Company reports beginning-of-the-year total assets of $6,276 million, end-of-the-year total assets of $6,862 million, total sales of $7,719 million, and net income of $805 million. Warning Don\'t show me this message again for the assignment Ok  Cancel   (a) Compute Campbell’s asset turnover ratio. (Round answer to 3 decimal places, e.g. 4.871.) Asset turnover ratio times

Solution

Average total assets=(Beginning assets+Ending asses)/2

=(6276+6862)/2=$6569 million

Hence asset turnover=Sales/Average total assets

=(7719/6569)

=1.175(Approx).