The following information was reported by Youngs Air Cargo Service for 2017: Net fixed assets (beginning of
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The following information was reported by Young’s Air Cargo Service for 2017:
Net fixed assets (beginning of year) .............................. $1,500,000
Net fixed assets (end of year) .......................................... 2,300,000
Net operating revenues for the year .............................. 3,600,000
Net income for the year ................................................... 1,600,000
Compute the company’s fixed asset turnover ratio (rounded to two decimal places) for the year. What can you say about Young’s ratio when compared to Southwest’s 2017 ratio?
Asset TurnoverAsset 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.
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Related Book For
Financial Accounting
ISBN: 978-1259964947
10th edition
Authors: Robert Libby, Patricia Libby, Frank Hodge
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