Financial statement data for years ending December 31 for DePuy Company are shown below. a. Determine the
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Financial statement data for years ending December 31 for DePuy Company are shown below.
a. Determine the fixed asset turnover ratio for 2014 and 2013.
b. Does the change in the fixed asset turnover ratio from 2013 to 2014 indicate a favorable or an unfavorabletrend?
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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2014 $5,510,000 2013 Net sales Fixed assets: $4,880,000 Beginning of year End of year 1,600,000 2,200,000 1,450,000 1,600,000
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a b The decrease in the fixed asset turnover ratio from 32 to 29 indicates an unfavo...View the full answer
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Related Book For
Corporate Financial Accounting
ISBN: 978-1133952411
12th edition
Authors: Carl S. Warren, James M. Reeve, Jonathan E. Duchac
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