Financial statement data for years ending December 31, 2019 and 2018, for Edison Company follow:
______________________________________ 2019 _____________ 2018
Sales ............................................... $1,884,000 ........... $1,562,000
Total assets:
Beginning of year ................................. 770,000 ................ 650,000
End of year .......................................... 800,000 ............... 770,000
a. Determine the asset turnover for 2019 and 2018.
b. Does the change in the asset turnover from 2018 to 2019 indicate a favorable or an unfavorable trend?