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a. If a firms assets of $15,000 represent 200 days sales, what is its annual sales? Assume a 365-day year. Annual sales b.

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Answer #1

Answer-a)- Annual sales = $27375.

Explanation-Annual sales = ($15000*365 days)/200 days

= $27375

b)- Asset turnover ratio = 1.825 times.

Explanation- Asset turnover ratio = Annual sales/Total assets

= $27375/$15000

= 1.825 times

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