Exercise 8-22 Evaluating efficient use of assets LO A1 Lok Co. reports net sales of...
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Accounting
Exercise 8-22 Evaluating efficient use of assets LO A1
Lok Co. reports net sales of $4,932,000 for Year 2 and $8,938,000 for Year 3. End-of-year balances for total assets are Year 1, $1,575,000; Year 2, $1,754,000; and Year 3, $1,940,000. (1) Compute Lok's total asset turnover for Year 2 and Year 3.
(2) Lok's competitor has a Total Asset Turnover of 3.0 during Year 3. Is Lok performing better or worse than its competitor on the basis of total asset turnover?
multiple choice
Worse
Better
10 Total Asset Turnover Total Asset Turnover Choose Numerator: 1 Choose Denominator: / 1 1 = Total asset turnover Year 2 Year 3
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