Industry average-holding sales constant


Bonner Corp.'s sales last year were $415,000, and its year-end total assets were $355,000. The average firm in the industry has a total assets turnover ratio (TATO) of 2.4. Bonner's new CFO believes the firm has excess assets that can be sold so as to bring the TATO down to the industry average without affecting sales. By how much must the assets be reduced to bring the TATO to the industry average, holding sales constant?

Request for Solution File

Ask an Expert for Answer!!
Finance Basics: Industry average-holding sales constant
Reference No:- TGS050563

Expected delivery within 24 Hours