Financial statement data for years ending December 31 for Dennis Company follow: Year 2 Year 1 Sales $4,521,000 $3,960,000 Fixed assets: Beginning of year 1,140,000 1,060,000 End of year 1,600,000 1,140,000 a. Determine the fixed asset turnover ratio for Year 1 and Year 2. Round your answers to one decimal place. Fixed asset turnover Year 1 fill in the blank 1 Year 2 fill in the blank 2 b. Does the change in the fixed asset turnover ratio from Year 1 to Year 2 indicate a favorable or an unfavorable change? Unfavorable
Financial statement data for years ending December 31 for Dennis Company follow: Year 2 Year 1 Sales $4,521,000 $3,960,000 Fixed assets: Beginning of year 1,140,000 1,060,000 End of year 1,600,000 1,140,000 a. Determine the fixed asset turnover ratio for Year 1 and Year 2. Round your answers to one decimal place. Fixed asset turnover Year 1 fill in the blank 1 Year 2 fill in the blank 2 b. Does the change in the fixed asset turnover ratio from Year 1 to Year 2 indicate a favorable or an unfavorable change? Unfavorable
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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Financial statement data for years ending December 31 for Dennis Company follow:
| Year 2 | Year 1 | |||
| Sales | $4,521,000 | $3,960,000 | ||
| Fixed assets: | ||||
| Beginning of year | 1,140,000 | 1,060,000 | ||
| End of year | 1,600,000 | 1,140,000 |
a. Determine the fixed asset turnover ratio for Year 1 and Year 2. Round your answers to one decimal place.
| Fixed asset turnover | |
| Year 1 | fill in the blank 1 |
| Year 2 | fill in the blank 2 |
b. Does the change in the fixed asset turnover ratio from Year 1 to Year 2 indicate a favorable or an unfavorable change?
Unfavorable
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