The following information relates to a manufacturer of CD players (amounts in millions):
|
Year 1 |
Year 2 |
Year 3 |
| Sales |
$230 |
|
$578 |
|
$1,024 |
|
| Average total assets |
52 |
|
125 |
|
279 |
|
| Net income |
30 |
|
30 |
|
79 |
|
Required:
If required, round your answers to two decimal places.
A. Compute the asset turnover ratio for each year.
B. How well has the company managed its investment in plant assets over the three years?
The input in the box below will not be graded, but may be reviewed and considered by your instructor.