Analyze ABC Depot The ABC Depot reported the following data (in millions) in its recent...
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Analyze ABC Depot The ABC Depot reported the following data (in millions) in its recent financial statements: Year 2 Year 1 Total sales $88,350 $79,200 Total assets: Beginning of year 56,800 61,000 End of year 61,000 71,000 a. Determine the asset turnover ratio for ABC Depot for Year 2 and Year 1. Round to one decimal place. Year 2 Year 1 Asset turnover ratio b. What does an asset turnover ratio indicate? 1. Effectiveness in the use of assets to generate revenue. 2. Effective use of revenue to create assets. 3. Effective use of assets to reduce cost. 4. Effective use of assets to increase assets
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