Sales of Slider Ltd are $250 million and the operating profit after tax is $25 million. Asset turnover is 4 times p.a. What is the value of Slider Ltd's total assets?
A) $6.25 million
B) $10 million
C) $62.5 million
D) $100 million

Question

Quizplus · Accepted Answer

Asset turnover is calculated as Sales / Total Assets. Given that the asset turnover is 4 times p.a. and sales are $250 million, we can calculate the total assets as $250 million / 4 = $62.5 million.

Sales of Slider Ltd Are $250 Million and the Operating