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 Circuit City Stores, Inc.:

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.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Accounting

ISBN: 978-0324401844

22nd Edition

Authors: Carl S. Warren, James M. Reeve, Jonathan E. Duchac

See More Books

Question Posted: Jul 17, 2012 02:11 AM

See More Questions

The following table shows the revenues and average net fixed assets for a recent fiscal year for three different companies from three different industries: retailing, manufacturing, and...
The following table shows the revenues and average net fixed assets for a recent fiscal year for three different companies from three different industries: retailing, manufacturing, and...
The following table shows monthly revenue for six different web development companies. a. Use Excel to create sparklines for sales at each company. b. Which companies have generally decreasing...
Compose a detailed paper on the Emotions of employees and its impact on the organization
What is the relationship between interest rates and the length of time to maturity? Figures 13.1 through 13.3 give various yield curves for U.S. Treasury securities. What is the current yield curve...
1. Tywin Lannister is the sole owner of his family's homeplace, Casterly Rock, comprised of 21 acres. His county tax bill shows that Casterly Rock is appraised at $200,000 (based on a county...
A circular current-carrying wire loop produces a magnetic field. A spinning disk of uniformly distributed charge produces a similar magnetic field. How would you expect the field due to a spinning...
Ford Motor (automotive) and Caterpillar (heavy equipment) both use the LIFO inventory valuation method. Caterpillar uses it for 75% of its inventories and Ford for 25% of its inventories. Data from...
11. Combustion of 1 mole of C6H6(l) inside a closed container of constant volume liberates 900 kJ of heat energy. What would be the value of heat liberated per mole of C6H6(l) if the reaction occurs...
Lossy dielectric between spherical electrodes. Consider a spherical capacitor with the region between the inner and outer electrodes filled with lossy material with permittivity eo and conductivity...
Verizon Communications is a major telecommunications company in the United States. Verizon's balance sheet disclosed the following information regarding fixed assets: Verizon's revenue for 2005 was...
Based on the data in Exercise 10-12, determine the depreciation for the Bobcat for each of the first two years, using the sum-of-the-years-digits depreciation method. Round to the nearest dollar.
What type of employee is required in todays dynamic world of work, and what new job requirements have emerged?
Pick a company or brand or business on which to focus, such as cereals, What are the major segments? What are the customer motivations by segments? What are the unmet needs?
What are the disadvantages of the closed layered architecture?
What is the difference between an architectural view and an architectural viewpoint?
A Florida lottery machine and printer at Store #8302 operates 360 days a year. If the machine does not work and breaks down, it costs the Florida Lottery Commission $2,000 per day. If store employees...
Explain the difference between a PIM and a PSM.
Modify the binary search routine to support search in an array of infinite size. In particular, you are given as input a sorted array and a key value K to search for. Call n the position of the...
Use multiplication or division of power series to find the first three nonzero terms in the Maclaurin series for each function. y = e x2 cos x
How would you go about finding the number of chalk molecules it takes to write your name on the board? Explain what you would need to do and provide a sample calculation.
QUESTION to answer for the Company Nuvalent, INC: VI. Implementation, Evaluation and Control of Strategies (This is all estimations) a. Explain in more detail how each recommended strategy within the...
a. Explain the results of ANOVA analysis using hypothesis testing procedure (5 marks). Descriptives ***My favourite sports person acts as a role model for me 95% Confidence Interval for Mean N Mean...
Galt Motors currently produces 50,000 electric motors a year and expects output levels to remain steady in the future. It buys armatures from an outside supplier at a price of $2.00 each. The plant...

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

Question:

Average Net Fixed Assets Revenue Best Buy Circuit City Stores, Inc. $27,433 10,472 $2,354 662

Step by Step Answer:

a Best Buy 1165 274332354 Circuit City Stores Inc 1582 10472662 b Circuit C...View the full answer

Accounting

Students also viewed these Accounting questions