Answer:
Assets must decrease by 223,750
Explanation:
the total assets turnover is calcualte as follows:
[tex]\frac{sales}{assets}[/tex]
As the new CFO jsut want to reduce assets and not to put the effort to increase sales as it see it less likely It will reduce assets (lower the credit term, lower inventory stocks among other measurements)
our goal is a value of 2.4 with sales of 315,000
[tex]\frac{315,000}{Assets} = 2.4\\Assets = 315,000 \div 2.4\\[/tex]
Assets = 131.250
currently the assets are 355,000
we need to redue it to 131,250 so we need a decrease in the order of:
355,000 - 131,250 = 223,750
