The following information was reported by Amuse Yourself Parks (AYP) for 2012: 

Net fixed assets (beginning of year).......... $8,450,000

Net fixed assets (end of year)...................... 8,250,000

Net sales for the year...................................  4,175,000

Net income for the year ............................... 1,700,000

Compute the company’s fixed asset turnover ratio for the year. What can you say about AYP’s fixed asset turnover ratio when compared to Cedar Fair’s 2012 ratio as seen in Exhibit 9.5? 

Exhibit 9.5

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EXHIBIT 9.5 Summary of Fixed Asset Turnover Ratio Analyses Relevant Information 2015 Fixed Asset Company (in millions) Turnover Calculation 2015 2014 Net sales $1,236 $1,160 A Cedar fair LP $1,236 = 0.81 ... Net fixed 1,515 1,527 (81,515 + 81,527)/2 assets Net sales $1,264 $1,176 $1,264 4 YEARE = 1.05 Net fixed 1,198 1,218 ($1,198 + $1,218)/2 Six Flags assets Net sales $4,968 $4,618 $4,968 = 3.27 YAHOO! ($1,547 + $1,488)/2 Net fixed 1,547 1,488 assets