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A total asset turnover ratio of 5.1 indicates that: Multiple Choice For every $1 in sales, the firm acquired $5.1 in assets during the period. For every $1 in assets, the firm produced $5.1 in net sales during the period. For every $1 in assets, the firm earned gross profit of $5.1 during the period. For every $1 in assets, the firm earned $5.1 in net income. For every $1 in assets, the firm paid $5.1 in expenses during the period.

Respuesta :

Answer:

For every $1 in assets, the firm produced $5.1 in net sales during the period.

Explanation:

The formula to compute the total asset turnover ratio is shown below:

Total Asset turnover ratio = Net Sales ÷ Average Total Asset

where,

Net sales come after deducting the sales discounts, and other expenses

And, the average total assets could be computed by taking an average of opening and closing total assets

So, the total asset turnover shows that for every $1 of assets would create $5.1 of sales

Hence, the first option is correct

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