Duncan Reported Net Sales of $2,523 Million and Average Total

question 10

True/False

Duncan reported net sales of $2,523 million and average total assets of $1,476 million. Its total asset turnover equals 1.71.
Total Asset Turnover = Net Sales/Average Total Assets
Total Asset Turnover = $2,523/$1,476 = 1.71

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Definitions:

Cash

A form of liquid asset that represents immediately available funds for transaction, trade, and settling debts.

Accounts Receivable

Money owed to a business by its clients or customers for goods or services delivered or used but not yet paid for.

Service Revenue

Revenue received by a business from the services it offers to its clients.

Normal Balance

The side of an account, whether debit or credit, where increases in the account are recorded, determined by the account's classification in the accounting equation.