Explain the fixed asset turnover ratio indicates

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1. How will an increase in sales will cause net margin on the pro forma income statement affect a firm with operation on financial leverage. I want to know if it will rise/fall/or stay the same

2. Does the pro forma income statement must be constructed prior to the pro forma balance sheet.

3. A pro form a balance sheet may be call for alteration of proposed operating of financial plans

4. The fixed asset turnover ratio indicates how frequently a firm liquidates its fixed assists

5. The gross profit margin evaluates the profitability of all aspects of a firms operations

Reference no: EM1361766

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