Question
At December 31, 2018 and 2017, respectively, York Industries reported land, buildings, and equipment totaling $5,655,000 and $2,152,000 along with Accumulated Depreciation of $1,000,000
At December 31, 2018 and 2017, respectively, York Industries reported land, buildings, and equipment totaling $5,655,000 and $2,152,000 along with Accumulated Depreciation of $1,000,000 and $600,000 on its balance sheets. Revenues amounted to $38,227,000 and $12,113,000 for 2018 and 2017, respectively. Required: Part a) Compute York's fixed asset turnover ratio for the year ended December 31, 2018. Part b) Assume that York's fixed asset turnover ratio increased from 2017 to 2018. How might an analyst interpret an increasing ratio? Part c) Alternatively, assume that York's fixed asset turnover rate decreased. Does a declining ratio always indicate a negative trend? Show all the steps of the answer, including the formulas used in each part. LITRAL Heme
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