# (SOLVED) following figures have been extracted from the financial statements of a company. Non-current assets £80 million Current assets £40 million

**Discipline:** Finance

**Type of Paper:** Question-Answer

**Academic Level:** Undergrad. (yrs 1-2)

**Paper Format:** APA

**Pages:**1

**Words:**262

Question

**The following figures have been extracted from the financial statements of a company.**

**Non-current assets £80 million**

**Current assets £40 million**

**Current liabilities £20 million**

**Sales £200 million**

**Cost of goods sold £75 million**

**Operating expenses £45 million**

**Calculate the following financial ratios:**

**a. Total net asset turnover ratio**

**b. EBIT percentage**

**c. ROTNA**

**Expert Solution Preview**

**a. Total net asset turn over ratio:**

**Total net
asset turnover ratio is calculated to determine the efficiency of the
company's sales with respect to its assets in a year.**

**Total net asset turnover ratio = Net sales / Total assets**

** Total assets = Current assets + Non current assets**

** - 40+80**

** = 120**

** Total net asset turnover ratio = 200/120**

** = 1.66**

**Answer:**

**Total net asset turnover ratio is 1.66**

**b. EBIT Percentage:.......**