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Select financial statement data for two recent years for Davenport Company are as follows:   20Y5 20Y4 Sales $1,800,000   $1,170,000   Fixed assets:         Beginning of year 690,000   610,000   End of year 750,000   690,000   a. Determine the fixed asset turnover ratio for 20Y4 and 20Y5. Round to one decimal place.   20Y5 20Y4 Fixed Asset Turnover Ratio                                 b. Does the change in the fixed asset turnover ratio from 20Y4 to 20Y5 indicate a favorable or an unfavorable change?

Select financial statement data for two recent years for Davenport Company are as follows:   20Y5 20Y4 Sales $1,800,000   $1,170,000   Fixed assets:         Beginning of year 690,000   610,000   End of year 750,000   690,000   a. Determine the fixed asset turnover ratio for 20Y4 and 20Y5. Round to one decimal place.   20Y5 20Y4 Fixed Asset Turnover Ratio                                 b. Does the change in the fixed asset turnover ratio from 20Y4 to 20Y5 indicate a favorable or an unfavorable change?

Cornerstones of Financial Accounting
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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Fixed asset turnover ratio

Select financial statement data for two recent years for Davenport Company are as follows:

  20Y5 20Y4
Sales $1,800,000   $1,170,000  
Fixed assets:        
Beginning of year 690,000   610,000  
End of year 750,000   690,000  

a. Determine the fixed asset turnover ratio for 20Y4 and 20Y5. Round to one decimal place.

  20Y5 20Y4
Fixed Asset Turnover Ratio                                

b. Does the change in the fixed asset turnover ratio from 20Y4 to 20Y5 indicate a favorable or an unfavorable change?

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