? v2.cengagenow.com/ilrn/takeAssignment takeAssignmentMain.do?invoker-assignment

Question

? v2.cengagenow.com/ilrn/takeAssignment takeAssignmentMain.do?invoker-assignments&ta; cis113 (-)CIS146 Blackboard Learn MEC0231 ? BUS241 Calculator Financial statement data for the years ended December 31 for Parker Corporation are as follows Current YearPrior Year Net Sales $2.595,600 $2,409,498 Fixed assets (net) Beginning of the year End of the year $901,070 %820,000 829,330 901,070 a. Determine the fixed asset turnover for the current and prior years. R?und your answers to one decimi Current Year Prior Year b. Does the change in fixed asset turnover from the prior year to the current year indicate a favorable o

Explanation / Answer

Answer to Part a.

Current Year:

Fixed Asset Turnover = Net Sales / Average Fixed Assets
Average Fixed Assets = (901,070 + 829,330)/2
Average Fixed Assets = $865,200

Fixed Asset Turnover = 2,595,600 / 865,200
Fixed Asset Turnover = 3.00 times

Prior Year:

Fixed Asset Turnover = Net Sales / Average Fixed Assets
Average Fixed Assets = (820,000 + 901,070)/2
Average Fixed Assets = $860,535

Fixed Asset Turnover = 2,409,498 / 860,535
Fixed Asset Turnover = 2.80 times

Answer to Part b.

An increase in Fixed Asset Turnover in Current Year from the prior year shows a favourable trend, as it indicates an increase in efficiency in using Fixed Assets to generate Sales.

Related Questions

Navigate

• Browse (All)
• Browse #
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.