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Financial statement data for years ending December 31 for Latchkey Company follows: 2016 2015 Sales $1,734,000 $1.645,000 Total assets: Beginning of year End of year 480,000 460,000 540,000 480,000 a. Determine the ratio of sales to assets for 2016 and 2015. b. Does the change in the ratio of sales to assets from 2015 to 2016 indicate a favorable or an unfavorable trend?

Financial statement data for years ending December 31 for Latchkey Company follows: 2016 2015 Sales $1,734,000 $1.645,000 Total assets: Beginning of year End of year 480,000 460,000 540,000 480,000 a. Determine the ratio of sales to assets for 2016 and 2015. b. Does the change in the ratio of sales to assets from 2015 to 2016 indicate a favorable or an unfavorable trend?

Accounting (Text Only)
Accounting (Text Only)
26th Edition
ISBN:9781285743615
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter6: Accounting For Merchandising Businesses
Section: Chapter Questions
Problem 6.7APE
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PE 6-7A Financial statement data for years ending December 31 for Latchkey Company follows: EE 6-7 p 243 Ratio of sales to assets OBJ. S 2016 2015 Sales $1,734,000 $1,645,000 Total assets: Beginning of year End of year 480,000 460,000 480,000 540,000 a. Determine the ratio of sales to assets for 2016 and 2015. b. Does the change in the ratio of sales to assets from 2015 to 2016 indicate a favorable or an unfavorable trend?
Transcribed Image Text:PE 6-7A Financial statement data for years ending December 31 for Latchkey Company follows: EE 6-7 p 243 Ratio of sales to assets OBJ. S 2016 2015 Sales $1,734,000 $1,645,000 Total assets: Beginning of year End of year 480,000 460,000 480,000 540,000 a. Determine the ratio of sales to assets for 2016 and 2015. b. Does the change in the ratio of sales to assets from 2015 to 2016 indicate a favorable or an unfavorable trend?
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