Solution-Determine the fixed asset turnover ratio

Determine the fixed asset turnover ratio

Reference no: EM132682073

Problem - Fixed asset turnover ratio

Financial statement data for years ending December 31 for Fallon Company are shown below.

	2012	2011
Net sales	$740,000	$520,000
Fixed assets:
Beginning of year	425,000	375,000
End of year	500,000	425,000

Required -

a. Determine the fixed asset turnover ratio for 2012 and 2011.

b. Does the change in the fixed asset turnover ratio from 2011 to 2012 indicate a favorable or an unfavorable trend?

Reference no: EM132682073

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Determine the fixed asset turnover ratio

Reference no: EM132682073

Reference no: EM132682073

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