Asked by Charisma Bennett on May 31, 2024
Verified
Fill in the missing numbers using the formula for fixed asset turnover: Company A Company B Company C Company D Sales $5,000,000$720,000$900,000? Beginning fixed assets $450,000$275,000?$380,000 Ending fixed assets $800,000?$310,000$420,000 Fixed asset turnover ?2.43.02.6\begin{array} { | l | r | r | r | r | } \hline & \text { Company A } & \text { Company B } & \text { Company C } & \text { Company D } \\\hline \text { Sales } & \$ 5,000,000 & \$ 720,000 & \$ 900,000 & ? \\\hline \text { Beginning fixed assets } & \$ 450,000 & \$ 275,000 & ? & \$ 380,000 \\\hline \text { Ending fixed assets } & \$ 800,000 & ? & \$ 310,000 & \$ 420,000 \\\hline \text { Fixed asset turnover } & ? & 2.4 & 3.0 & 2.6 \\\hline\end{array} Sales Beginning fixed assets Ending fixed assets Fixed asset turnover Company A $5,000,000$450,000$800,000? Company B $720,000$275,000?2.4 Company C $900,000?$310,0003.0 Company D ?$380,000$420,0002.6
Fixed Asset Turnover
A financial ratio that measures a company's effectiveness in generating revenue from its fixed assets, such as property, plant, and equipment.
Sales
The activities involved in selling goods or services in return for money or other compensation.
Beginning Fixed Assets
The value of a company's long-term tangible assets at the start of a fiscal period.
- Analyze and interpret fixed asset turnover ratios.
Verified Answer
ZK
Zybrea KnightJun 06, 2024
Final Answer :
Company Company Company Company A B C D Sales $5,000,000$720,000$900,000$1,040,000 Beginning fixed assets $450,000$275,000$290,000$380,000 Ending fixed assets $800,000$325,000$310,000$420,000 Fixed asset turnover 8.02.43.02.6\begin{array} { | l | r | r | r | r | } \hline & \text { Company } & \text { Company } & \text { Company } & \text { Company } \\& \text { A } & \text { B } & \text { C } & \text { D } \\\hline \text { Sales } & \$ 5,000,000 & \$ 720,000 & \$ 900,000 & \$ 1,040,000 \\\hline \text { Beginning fixed assets } & \$ 450,000 & \$ 275,000 & \$ 290,000 & \$ 380,000 \\\hline \text { Ending fixed assets } & \$ 800,000 & \$ 325,000 & \$ 310,000 & \$ 420,000 \\\hline \text { Fixed asset turnover } & 8.0 & 2.4 & 3.0 & 2.6 \\\hline\end{array} Sales Beginning fixed assets Ending fixed assets Fixed asset turnover Company A $5,000,000$450,000$800,0008.0 Company B $720,000$275,000$325,0002.4 Company C $900,000$290,000$310,0003.0 Company D $1,040,000$380,000$420,0002.6
Learning Objectives
- Analyze and interpret fixed asset turnover ratios.