Question
Asset Turnover Financial statement data for the years ending December 31, 20Y3 and 20Y2, for Lawson Company follow: 20Y3 20Y2 Sales $1,200,000 $1,140,000 Total assets:
Asset Turnover
Financial statement data for the years ending December 31, 20Y3 and 20Y2, for Lawson Company follow:
| 20Y3 | 20Y2 | ||
| Sales | $1,200,000 | $1,140,000 | |
| Total assets: | |||
| Beginning of year | 680,000 | 520,000 | |
| End of year | 820,000 | 680,000 | |
a. Determine the asset turnover for 20Y3 and 20Y2. Round your answers to one decimal place.
| 20Y3 | 20Y2 | |
| Asset turnover | fill in the blank 1 | fill in the blank 2 |
b. Is the change in the asset turnover from 20Y2 to 20Y3 favorable or unfavorable?
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Auditing
Authors: Karla M. Johnstone, Audrey A. Gramling, Larry E. Rittenberg
8th International Edition
0538477660, 978-0538477666
