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The following table shows the revenue and average net fixed assets (in millions) for a recent fiscal year for Best

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The following table shows the revenue and average net fixed assets (in millions) for a recent fiscal year for Best Buy and Circuit City Stores, Inc.:

The following table shows the revenue and average net fixed assets

a. Compute the fixed asset turnover for each company. Round to two decimal places.
b. Which company uses its fixed assets more efficiently?Explain.

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.
Transcribed Image Text:

Average Net Fixed Assets Revenue Best Buy Circuit City Stores, Inc. $27,433 10,472 $2,354 662

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a Best Buy 11 65 27 433 2 354 Circuit City Stores Inc 15 82 10 472 662 b Circ…View the full answer


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Accounting

Accounting

ISBN: 978-0324401844

22nd Edition

Authors: Carl S. Warren, James M. Reeve, Jonathan E. Duchac

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Question Posted: July 17, 2012 02:11:41
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