Question
Flounder Company and Novak Corp. two corporations of roughly the same size, are both involved in the manufacture of in line skates. Each company depreciates
Flounder Company and Novak Corp. two corporations of roughly the same size, are both involved in the manufacture of in line skates. Each company depreciates its plant assets, using the straight-line approach. An investigation of their financial statements reveals the following:
Flounder Co. Novak Corp
Net income $800,000 1,100,000
Net sales $1,326,000 $1,250,500
Average plant assets $2,550,000 $2,050,000
Average plant assets $1,820,000 $1,010,000
For each company calculate the asset turnover.
Flounder Co. Novak Corp
Asset turnover ___________ times _____________times
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