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Financial statement data for years ending December 31 for DePuy Company follow: Year 2 Year 1 Sales $5,510,000 $4,880,000 Fixed assets: Beginning of year End of year 1,600,000 1,450,000 2,200,000 1,600,000 a. Determine the fixed asset turnover ratio for Year 1 and Year 2. b. Does the change in the fixed asset turnover ratio from Year 1 to Year 2 indicate a favorable or an unfavorable change?

Financial statement data for years ending December 31 for DePuy Company follow: Year 2 Year 1 Sales $5,510,000 $4,880,000 Fixed assets: Beginning of year End of year 1,600,000 1,450,000 2,200,000 1,600,000 a. Determine the fixed asset turnover ratio for Year 1 and Year 2. b. Does the change in the fixed asset turnover ratio from Year 1 to Year 2 indicate a favorable or an unfavorable change?

Corporate Financial Accounting
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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Financial statement data for years ending December 31 for DePuy Company follow: Year 2 Year 1 Sales $5,510,000 $4,880,000 Fixed assets: Beginning of year End of year 1,600,000 1,450,000 2,200,000 1,600,000 a. Determine the fixed asset turnover ratio for Year 1 and Year 2. b. Does the change in the fixed asset turnover ratio from Year 1 to Year 2 indicate a favorable or an unfavorable change?
Transcribed Image Text:Financial statement data for years ending December 31 for DePuy Company follow: Year 2 Year 1 Sales $5,510,000 $4,880,000 Fixed assets: Beginning of year End of year 1,600,000 1,450,000 2,200,000 1,600,000 a. Determine the fixed asset turnover ratio for Year 1 and Year 2. b. Does the change in the fixed asset turnover ratio from Year 1 to Year 2 indicate a favorable or an unfavorable change?
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