Solution-Determine the fixed asset turnover ratio

Determine the fixed asset turnover ratio

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Reference no: EM133140414

Question - Fixed asset turnover ratio - Select financial statement data for two recent years for Davenport Company are as follows:

	20Y5	20Y4
Sales	$1,668,000	$1,125,000
Fixed assets:
Beginning of year	670,000	580,000
End of year	720,000	670,000

Required -

a. Determine the fixed asset turnover ratio for 20Y4 and 20Y5. Round to one decimal place.

b. Does the change in the fixed asset turnover ratio from 20Y4 to 20Y5 indicate a favorable or an unfavorable change?

Reference no: EM133140414

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Determine the fixed asset turnover ratio

Reference no: EM133140414

Reference no: EM133140414

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