Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Fixed Asset Turnover Ratio Financial statement data for years ending December 31 for Dennis Company follow: Year 2 Year 1 Sales $2,265,000 $2,376,000 Fixed assets:
Fixed Asset Turnover Ratio
Financial statement data for years ending December 31 for Dennis Company follow:
Year 2 Year 1 Sales $2,265,000 $2,376,000 Fixed assets: Beginning of year 565,000 515,000 End of year 567,500 565,000
a. Determine the fixed asset turnover ratio for Year 1 and Year 2. Round your answers to one decimal place.
Fixed asset turnover Year 1 fill in the blank 1 Year 2 fill in the blank 2
b. Does the change in the fixed asset turnover ratio from Year 1 to Year 2 indicate a favorable or an unfavorable change?
FavorableUnfavorable
Fixed Asset Turnover Ratio
Financial statement data for years ending December 31 for Dennis Company follow:
| Year 2 | Year 1 | |||
| Sales | $2,265,000 | $2,376,000 | ||
| Fixed assets: | ||||
| Beginning of year | 565,000 | 515,000 | ||
| End of year | 567,500 | 565,000 | ||
a. Determine the fixed asset turnover ratio for Year 1 and Year 2. Round your answers to one decimal place.
| Fixed asset turnover | |
| Year 1 | fill in the blank 1 |
| Year 2 | fill in the blank 2 |
b. Does the change in the fixed asset turnover ratio from Year 1 to Year 2 indicate a favorable or an unfavorable change?
FavorableUnfavorable
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started