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Homework answers / question archive / Illustration: The March 25 cash register reading for Cooley Grocery shows sales of $10,000 and sales taxes of $600 (sales tax rate of 6%), 1
Illustration: The March 25 cash register reading for Cooley Grocery shows sales of $10,000 and sales taxes of $600 (sales tax rate of 6%),
1.the journal entry is:
2.A total asset turnover ratio of 3.5 indicates that:
Answer 1:
|
Date |
Account title and explanation |
Debit |
Credit |
|
25-Mar |
Cash |
$ 10,600 |
|
|
Sales revenue |
$ 10,000 |
||
|
Sales tax payable |
$ 600 |
||
|
(Entry to record cash sale made including sales tax) |
|||
Answer 2:
For every $1 in assets, the firm produced $3.50 in net sales during the period
Explanation:
Asset Turnover = Sales / Average Total Assets
Asset Turnover is a financial ratio that measures the efficiency of a company's use of its assets in generating revenue or income for the company. A higher asset turnover ratio implies that the company is operating efficiently and is able to generate solid revenue income using the assets at their disposal....
