Question: Fixed Asset Turnover Ratio Financial statement data for years ending December 31 for Dennis Company follow: Sales Fixed assets: Beginning of year End of

Fixed Asset Turnover Ratio Financial statement data for years ending December 31

Fixed Asset Turnover Ratio Financial statement data for years ending December 31 for Dennis Company follow: Sales Fixed assets: Beginning of year End of year Year 2 $1,981,875 565,000 567,500 Year 1 $1,728,000 $15,000 565,000 a. Determine the fixed asset turnover ratio for Year 1 and Year 2. Round your answers to one decimal place. Year 1 Fixed asset turnover Year 2 b. Does the change in the fixed asset turnover ratio from Year 1 to Year 2 indicate a favorable or an unfavorable change?

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