Asset turnover ratio Financial statement data for years ended December 31, 20Y3 and 20Y2, for Edison Company follow: 20Y3 20Y2 Sales $1,950,000 $1,564,000 Total assets: Beginning of year 740,000 620,000 End of year 820,000 740,000 a. Determine the asset turnover ratio for 20Y3 and 20Y2. Round answers to one decimal place. 20Y3 20Y2 Asset turnover fill in the blank 1 fill in the blank 2 b. Is the change in the asset turnover ratio from 20Y2 to 20Y3 favorable or unfavorable?
Asset turnover ratio Financial statement data for years ended December 31, 20Y3 and 20Y2, for Edison Company follow: 20Y3 20Y2 Sales $1,950,000 $1,564,000 Total assets: Beginning of year 740,000 620,000 End of year 820,000 740,000 a. Determine the asset turnover ratio for 20Y3 and 20Y2. Round answers to one decimal place. 20Y3 20Y2 Asset turnover fill in the blank 1 fill in the blank 2 b. Is the change in the asset turnover ratio from 20Y2 to 20Y3 favorable or unfavorable?
Corporate Financial Accounting
14th Edition
ISBN:9781305653535
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter5: Accounting For Merchandising Businesses
Section: Chapter Questions
Problem 5.2ADM: Home Depot: Asset turnover ratio The Home Depot reported the following data (in millions) in its...
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Asset turnover ratio
Financial statement data for years ended December 31, 20Y3 and 20Y2, for Edison Company follow:
| 20Y3 | 20Y2 | |||
| Sales | $1,950,000 | $1,564,000 | ||
| Total assets: | ||||
| Beginning of year | 740,000 | 620,000 | ||
| End of year | 820,000 | 740,000 |
| a. | Determine the asset turnover ratio for 20Y3 and 20Y2. Round answers to one decimal place. |
| 20Y3 | 20Y2 | |||
| Asset turnover | fill in the blank 1 | fill in the blank 2 |
| b. | Is the change in the asset turnover ratio from 20Y2 to 20Y3 favorable or unfavorable? |
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