Fixed asset turnover-returns-allowances

Assignment Help Accounting Basics

Reference no: EM1359252

During 2011, Company X sells 500,000 units for $8 each. Sales discounts are $100,000 and sales returns and allowances are $300,000. The company reported a total of $710,000 in fixed assets on January 1, 2011 and $890,000 in fixed assets on December 31, 2011.

a. Calculate net sales revenue.

b. Calculate average fixed assets.

c. Calculate the fixed asset turnover ratio.

d. Assume the 2011 fixed asset turnover ratio was lower than the 2010 ratio. Describe one circumstance where this change would indicate bad news and one circumstance where this change would be consistent with good news.

Reference no: EM1359252

Questions Cloud

What is the resulting compressional force on the earth : What is the resulting compressional force on Earth. Two loudspeakers, A and B, are driven by the same amplifier and emit sinusoidal waves in phase.

Net operating losses : To what years can the 2008, 2011 and 2012 net operating losses be carried back? What amount, if any, is available as a net operating loss to be carried forward?

Explain due to a growing us economy to overall market demand : Explain due to a growing US economy, the overall market demand for nails will increase by 2%. Based on this information, should you plan to increase or decrease your production of nails.

Examine the top-two aspects of the selection process : Examine the top-two aspects of the selection process that you would focus on when selecting candidates for the software developer positions.

Fixed asset turnover-returns-allowances : During 2011, Company X sells 500,000 units for $8 each. Sales discounts are $100,000 and sales returns and allowances are $300,000. The company reported a total of $710,000 in fixed assets on January 1, 2011 and $890,000 in fixed assets on Decembe..

Show future invention and personality inventories : Proponents of career aids such as future invention and personality inventories claim that they help a person refine a person's approach to a finding an appropriate career.

Illuminate the object with the flashlight : illuminate the object with the flashlight. One way to produce artificial gravity in a space station is to spin it.

Foreign competition limit the prices : Determine how does foreign competition limit the prices that domestic companies can charge and the wages and benefits that workers can demand?

Craving-tolerance and withdrawal : The other big concepts in addiction are craving, tolerance and withdrawal. But the 3 C's capture another side of it: control, compulsion and consequence.

User Account

All Pages