The following is a list of account titles and amounts (in thousands) reported at December 31, 2017,

Question:

The following is a list of account titles and amounts (in thousands) reported at December 31, 2017, by Megan’s Veterinary Clinic: 

Buildings and Improvements $95 Goodwill $45 Prepaids and Other Current Assets 71 Machinery and Equipment 43 Allowance for Doubtful Accounts 3 Accumulated Depreciation 43 Other Non-current Assets 20 Inventories 31 Cash and Cash Equivalents 63 Other Intangibles 58 Accounts Receivable 64 Land and Improvements 7


Required: 

1. Prepare the asset section of a classified balance sheet for Megan’s Veterinary Clinic, using ASPE. 

2. Using Megan’s Veterinary Clinic’s 2017 Net Sales Revenue of $402 (thousand) and its Net Fixed Assets of $118 (thousand) at December 31, 2016, calculate the fixed asset turnover ratio for 2017. Has the company generated more or less revenue from each dollar of fixed assets than in 2016, when the ratio was 2.75?

Asset Turnover
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.
Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Fundamentals of Financial Accounting

ISBN: 978-1259269868

5th Canadian edition

Authors: Fred Phillips, Robert Libby, Patricia Libby, Brandy Mackintosh

Question Posted: