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Rangoon Corp's sales last year were $400,000, and its year-end total assets were $300,000. The average firm in the industry has a total assets turnover ratio (TATO) of 2.5. The new CFO believes the firm has excess assets that can be sold so as to bring the TATO down to the industry average without affecting sales. By how much must the assets be reduced to bring the TATO to the industry average?

Submitted: 256 days and 21 hours ago.

Category: Finance

Value: $9

Status: CLOSED

Already Tried:
1.$100,000
2.$110,000
3.$120,000
4.$130,000
5.$140,000

Accepted Answer

XXXXXXXXXXXX,

To reduce assets to bring the TATO to industry average, Rangoon Corp needs reduce assets by $140,000

I hope this helps - Regards

Accepts:
Expert:	James Heal
Pos. Feedback:	100.0 %
Answered:	3/11/2009

Financial Advisor

15 years expertise in all ares of personal finance, including credit cards, mortgages, real estate.

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Optional Information

Already Tried:
1.$100,000
2.$110,000
3.$120,000
4.$130,000
5.$140,000

Accepted Answer

XXXXXXXXXXXX,

To reduce assets to bring the TATO to industry average, Rangoon Corp needs reduce assets by $140,000

I hope this helps - Regards

Finance

Have your own Finance question?

Related Finance Topics:

Question

Optional Information

Already Tried: 1.$100,000 2.$110,000 3.$120,000 4.$130,000 5.$140,000

Accepted Answer

XXXXXXXXXXXX, To reduce assets to bring the TATO to industry average, Rangoon Corp needs reduce assets by $140,000 I hope this helps - Regards

Related Finance Questions

Already Tried:
1.$100,000
2.$110,000
3.$120,000
4.$130,000
5.$140,000

XXXXXXXXXXXX,

To reduce assets to bring the TATO to industry average, Rangoon Corp needs reduce assets by $140,000

I hope this helps - Regards