The following information was reported by Amuse Yourself Parks (AYP) for 2010: Net fixed assets (beginning of

Question:

The following information was reported by Amuse Yourself Parks (AYP) for 2010:
Net fixed assets (beginning of year) ......................... $8,450,000
Net fixed assets (end of year) .................................. 8,250,000
Net sales for the year ............................................... 4,175,000
Net income for the year ........................................... 1,700,000
Compute the company's fixed ratio for the year. What can you say about AYP's fixed ratio when compared to Cedar Fair's 2010 ratio in Exhibit 9.5?
Asset Turnover
Asset turnover is sales divided by total assets. Important for comparison over time and to other companies of the same industry. This is a standard business ratio.