Determine the ratio of net sales to assets

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Problem - Ratio of net sales to assets

The following financial statement data for years ending December 31 for Foodworks Company are shown below.

 

2012

2011

Net sales

$880,000

$787,500

Total assets:



Beginning of year

500,000

375,000

End of year

600,000

500,000

Required -

a. Determine the ratio of net sales to assets for 2012 and 2011.

b. Does the change in the ratio of net sales to assets from 2011 to 2012 indicate a favorable or an unfavorable trend?

Reference no: EM132680184

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