Pitt reported the following information for 2018 and 2019: Required: Compute Pitt's fixed asset turnover ratio and
Question:
Pitt reported the following information for 2018 and 2019:
Required:
Compute Pitt's fixed asset turnover ratio and the average age of its fixed assets.
Asset turnover is sales divided by total assets. Important for comparison over time and to other companies of the same industry. This is a standard business ratio.
Transcribed Image Text:
2018 2019 Property, plant, and equipment, cost Accumulated depreciation Net sales Depreciation expense $ 550,000 $550,000 4,600,000 50,000
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Fixed Asset Turnover Net SalesAverage Net Fixed Assets 4600000550000 1...View the full answer
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