The major fixed assets for each business include aircraft, sorting and handling facilities, delivery vehicles, and information

Question:

The major fixed assets for each business include aircraft, sorting and handling facilities, delivery vehicles, and information technology. The sales and average book value of fixed assets reported on recent for each company were as follows:

A. Compute the fixed asset turnover ratio for each company. (Round to one decimal place.)
B. Which company appears more efficient in using fixed assets?
C. Interpret the meaning of the ratio for the more efficient company.

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial... 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.