Asset turnover ratio Obj. 5 Financial statement data for the years ended December 31, 20Y7 and 20Y6,

Question:

Asset turnover ratio Obj. 5 Financial statement data for the years ended December 31, 20Y7 and 20Y6, for Latchkey Company follow:

20Y7 20Y6 Sales $1,734,000 $1,645,000 Total assets:

Beginning of year 480,000 460,000 End of year 540,000 480,000

a. Determine the asset turnover ratio for 20Y7 and 20Y6. Round to one decimal place.

b. Is the change in the asset turnover from 20Y6 to 20Y7 favorable or unfavorable?

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