The following information was reported by Kramers Air Cargo Service for 2008: Net fixed assets (beginning of

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The following information was reported by Kramer’s Air Cargo Service for 2008:

Net fixed assets (beginning of year) ...... $1,900,000

Net fixed assets (end of year) ........ 2,300,000

Net sales for the year ............. 3,300,000

Net income for the year ............ 1,600,000

Compute the company’s fixed asset turnover ratio for the year. What can you say about Kramer’s ratio when compared to Southwest’s 2008 ratio?

Asset Turnover
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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Financial Accounting

ISBN: 978-0078111020

7th Edition

Authors: LibbyShort

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Question Posted: Dec 12, 2011 09:30 AM

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The following information was reported by Kramers Air Cargo Service for 2008: Net fixed assets (beginning of

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