The following table shows the revenue and average net fixed assets (in millions) for a recent fiscal

Question:

The following table shows the revenue and average net fixed assets (in millions) for a recent fiscal year for Best Buy and Circuit City Stores, Inc.:

a. Compute the fixed asset turnover for each company. Round to two decimal places.
b. Which company uses its fixed assets more efficiently?Explain.

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.

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Accounting

ISBN: 978-0324401844

22nd Edition

Authors: Carl S. Warren, James M. Reeve, Jonathan E. Duchac

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Question Posted: Jul 17, 2012 02:11 AM

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The following table shows the revenue and average net fixed assets (in millions) for a recent fiscal

Question:

Average Net Fixed Assets Revenue Best Buy Circuit City Stores, Inc. $27,433 10,472 $2,354 662

Step by Step Answer:

a Best Buy 1165 274332354 Circuit City Stores Inc 1582 10472662 b Circuit C...View the full answer

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