Financial statement data for years ending December 31, 2019 and 2018, for Edison Company follow: 2019 2018 Sales $1,491,000 $1,196,000 Total assets: beginning of year 590,000 450,000 end of year 830,000 590,000 a. Determine the asset turnover for 2019 and 2018. Round your answers to one decimal place. 2019 2018 Ratio of sales to assets b. Does the change in the asset turnover from 2018 to 2019 indicate a favorable or an unfavorable trend?
Financial statement data for years ending December 31, 2019 and 2018, for Edison Company follow: 2019 2018 Sales $1,491,000 $1,196,000 Total assets: beginning of year 590,000 450,000 end of year 830,000 590,000 a. Determine the asset turnover for 2019 and 2018. Round your answers to one decimal place. 2019 2018 Ratio of sales to assets b. Does the change in the asset turnover from 2018 to 2019 indicate a favorable or an unfavorable trend?
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter12: Fainancial Statement Analysis
Section: Chapter Questions
Problem 52CE: Asset Efficiency Ratios Selected financial statement numbers for Rutherford Company follow....
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Asset turnover
Financial statement data for years ending December 31, 2019 and 2018, for Edison Company follow:
| 2019 | 2018 | ||
| Sales | $1,491,000 | $1,196,000 | |
| Total assets: | |||
| beginning of year | 590,000 | 450,000 | |
| end of year | 830,000 | 590,000 |
a. Determine the asset turnover for 2019 and 2018. Round your answers to one decimal place.
| 2019 | 2018 | |
| Ratio of sales to assets |
b. Does the change in the asset turnover from 2018 to 2019 indicate a favorable or an unfavorable trend?
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