Question
Part 2. Turnover ratio of fixed assets 1.Read the following case and compute the turnover ratio of fixed assets. 2. Explain in your own words
Part 2. Turnover ratio of fixed assets
1.Read the following case and compute the turnover ratio of fixed assets.
2. Explain in your own words how the result of the turnover ratio of both companies is interpreted.
La Flor de Mayo and La Rosa del Monte compete in the moving service sector. The greatest assets of these companies are moving trucks, warehouses and technological equipment. Sales and the average book value of fixed assets (book value) reported in the latest financial statements of each company is as follows:
| La Flor de Mayo | La Rosa del Monte | |
| Sales (in millions) | $12,320 | $15,500 |
| Average book value of fixed assets (in millions) | $7,000 | $8,300 |
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Financial Accounting
Authors: Michelle Hanlon, Robert Magee, Glenn Pfeiffer, Thomas Dyckman
5th Edition
1618531654, 9781618531650
