Question: Select financial statement data for two recent years for DePuy Company are as follows: a. Determine the fixed asset turnover ratio for 20Y7 and 20Y8.

Select financial statement data for two recent years for DePuy Company are as follows: Sales Fixed assets: Beginning of year End of year 20Y8 $5,510,000 1,600,000

a. Determine the fixed asset turnover ratio for 20Y7 and 20Y8.

b. Does the change in the fixed asset turnover ratio from 20Y7 to 20Y8 indicate a favorable or an unfavorable change?

Sales Fixed assets: Beginning of year End of year 20Y8 $5,510,000 1,600,000 2,200,000 20Y7 $4,880,000 1,450,000 1,600,000

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