The following table shows the revenue and average net fixed assets (in millions) for a recent fiscal

Question:

The following table shows the revenue and average net fixed assets (in millions) for a recent fiscal year for Best Buy and RadioShack:

a. Compute the fixed asset turnover for each company. Round to two decimal places.
b. Which company uses its fixed assets more efficiently?Explain.

Asset Turnover
Asset turnover is sales divided by total assets. Important for comparison over time and to other companies of the same industry. This is a standard business ratio.

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Financial Accounting

ISBN: 978-1133952428

12th Edition

Authors: Warren, Reeve, Duchac

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Question Posted: May 07, 2012 06:14 AM

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The following table shows the revenue and average net fixed assets (in millions) for a recent fiscal

Question:

Average Net Revenue Fixed Assets $45,015 Best Buy RadioShack 4,225 3,740 312

Step by Step Answer:

a Best Buy 1204 450153740 RadioShack 1354 4225312 b RadioShacks fixed ass...View the full answer

Financial Accounting

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