How to calculate average operating assets?
Understand the Problem
The question is asking for the method to determine the average operating assets of a business or organization, which typically involves averaging the total assets over a specific period and excluding non-operational assets.
Answer
average operating assets = (Operating Assets at Beginning + Operating Assets at End) / 2
The final answer is average operating assets = (Operating Assets at Beginning + Operating Assets at End) / 2
Answer for screen readers
The final answer is average operating assets = (Operating Assets at Beginning + Operating Assets at End) / 2
More Information
Calculating average operating assets helps in assessing the efficiency of a business's asset utilization over a specific period.
Tips
Ensure that only operating assets, such as cash, accounts receivable, and inventory, are included. Non-operating assets like investments should be excluded.
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