Answer:
a. $1.08
Explanation:
Total assets include net fixed assets, working capital and current liabilities. Harrisburg Store's total assets are:
[tex]A= \$22,407+\$2,715+\$3,908\\A=\$29,030[/tex]
The total asset turnover is the amount of money worth of sales generated from every $1 in total assets and is given by:
[tex]TAT=\frac{sales}{assets}=\frac{\$31,350}{\$29,030} \\TAT = \$1.08[/tex]
$1.08 worth of sales are generated from every $1 in total assets.
