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Question

At the end of 2017, Stacky Corp. had $500,000 in liabilities and a debt-to-assets ratio of 0.5. For 2017, Stacky

had an asset turnover of 3.0. What were annual sales for Stacky in 2017?


$333,333

$1,200,000

$1,800,000

$3,000,000

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20190802_091625.png

Assets = 0.5
Liabilities/Assets = 0.5
500000/Assets = 0.5
500000/0.5 = Assets $ 1,000,000.00 = Assets
Asset turnover = 3.0
sales/Assets = 3.0
Sales/1000000 = 3.0
Sales = 3*1000000
Sales = S...

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