Question: Senior Company knows revenues have increased but wonders if they

Senior Company knows revenues have increased but wonders if they are keeping up with its growing investment in assets. Calculate asset turnover for 2011 and 2012 using the following data (Note: Round to one decimal place.):
Revenues, 2011 .......... $ 80,000
Revenues, 2012 .......... 88,000
Total assets, 2010 ......... 72,000
Total assets, 2011 ......... 80,000
Total assets, 2012 ......... 102,000
By this measure has the company improved? Why is it important to use average total assets in the calculation?




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  • CreatedSeptember 10, 2014
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