Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Directions: Use the information below to answer the following question. 2011 2012 2013 $824,000 $956,000 $1,120,000 Sales Net fixed assets $226,000 $239,000 $251,000 3.65 4.00

image text in transcribed

Directions: Use the information below to answer the following question. 2011 2012 2013 $824,000 $956,000 $1,120,000 Sales Net fixed assets $226,000 $239,000 $251,000 3.65 4.00 4.46 Sales / net fixed assets ratio Assuming no revaluation of fixed assets has occurred, which one of the following is the correct conclusion to draw from this trend? The business is becoming less productive and may need to replace fixed assets to gain efficiency. The business has increased its productivity and may need to add fixed assets to support sales growth. The business has used a double-declining rate of depreciation. The business has purchased additional fixed assets at the same rate that sales are growing

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions