Question: Fixed asset turnover ratio Obj. 7 Select financial statement data for two recent years for Davenport Company are as follows: 20Y5 20Y4 Sales $1,668,000 $1,125,000

Fixed asset turnover ratio Obj. 7 Select financial statement data for two recent years for Davenport Company are as follows:

20Y5 20Y4 Sales $1,668,000 $1,125,000 Fixed assets:

Beginning of year 670,000 580,000 End of year 720,000 670,000

a. Determine the fixed asset turnover ratio for 20Y4 and 20Y5.

b. Does the change in the fixed asset turnover ratio from 20Y4 to 20Y5 indicate a favorable or an unfavorable change?

AppendixLO1

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