Question
Asset turnover ratio Financial statement data for years ended December 31, 20Y3 and 20Y2, for Edison Company follow: Line Item Description 20Y3 20Y2 Sales $1,749,000
Asset turnover ratio
Financial statement data for years ended December 31, 20Y3 and 20Y2, for Edison Company follow:
| Line Item Description | 20Y3 | 20Y2 |
|---|---|---|
| Sales | $1,749,000 | $1,512,000 |
| Total assets: | ||
| Beginning of year | 770,000 | 670,000 |
| End of year | 820,000 | 770,000 |
a. Determine the asset turnover ratio for 20Y3 and 20Y2. Round answers to one decimal place.
| Line Item Description | 20Y3 | 20Y2 |
|---|---|---|
| Asset turnover | fill in the blank 1 | fill in the blank 2 |
b. Is the change in the asset turnover ratio from 20Y2 to 20Y3 favorable or unfavorable?
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Managerial Accounting
Authors: John J. Wild, Ken W. Shaw
2010 Edition
9789813155497, 73379581, 9813155493, 978-0073379586
