Question
Turnover ratio of fixed assets 1. Read the following case and compute the fixed asset turnover ratio. 2. Explain in your own words how the
Turnover ratio of fixed assets
1. Read the following case and compute the fixed asset turnover ratio.
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 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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Public Sector Audit
Authors: Carolyn J. Cordery, David C. Hay
1st Edition
0367650622, 9780367650629
