Asked by jailene lobaton on Jun 14, 2024
Verified
The following information was available for Landmark Restaurants for the past three years.
Using this information,compute the fixed asset turnover ratio for Year 3 and Year 2.(Round your answers to two decimal places. )
Fixed Asset Turnover Ratio
A performance metric that measures a company's efficiency in using its fixed assets to generate sales, calculated as net sales divided by the average net fixed assets.
- Calculate and analyze financial ratios relating to asset management and performance, including fixed asset turnover.
Verified Answer
JF
Justin FloydJun 21, 2024
Final Answer :
Year 3 fixed asset turnover ratio = 1.23 = $1,105,755 ÷ [($965,575 + $830,930)/2].
Year 2 fixed asset turnover ratio = 1.26 = $894,795 ÷ [($830,930 + $587,829)/2].
Year 2 fixed asset turnover ratio = 1.26 = $894,795 ÷ [($830,930 + $587,829)/2].
Learning Objectives
- Calculate and analyze financial ratios relating to asset management and performance, including fixed asset turnover.
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