1. Compute Lavender's fixed asset turnover ratio for 2016, 2017, and 2018. 2. During 2018, Zhu and Ramos reported a fixed asset turnover ratio of 8.3. Was Lavender's turnover better or worse than Zhu and Ramos's in that year?

1. Compute Lavender's fixed asset turnover ratio for 2016, 2017, and 2018. 2. During 2018, Zhu and Ramos reported a fixed asset turnover ratio of 8.3. Was Lavender's turnover better or worse than Zhu and Ramos's in that year?

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter7: Operating Assets

Section: Chapter Questions

Problem 24CE

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Question

E9-15 (Algo) Computing and Interpreting the Fixed Asset Turnover Ratio from a Financial Analysts
Perspective [LO 9-7]
The following data were included in a recent Lavender Associates annual report (in millions):
2017
$ 84,225
4,980
Net revenue
Net property, plant, and equipment
Required:
1. Compute Lavender's fixed asset turnover ratio for 2016, 2017, and 2018.
2. During 2018, Zhu and Ramos reported a fixed asset turnover ratio of 8.3. Was Lavender's turnover better or worse than Zhu and
Ramos's in that year?
Complete this question by entering your answers in the tabs below.
Required 1
Year
Required 2
2016
2017
2018
2015
2016
$ 167,500 $ 172,910
15,640
17,400
Compute Lavender's fixed asset turnover ratio for 2016, 2017, and 2018. (Do not round intermediate calculations. Round your
answers to 1 decimal place.)
Fixed Asset
Turnover Ratio
< Required 1
Required 2
2018
$123,889
9,580
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