Ask Question
BusinessBusiness
8 January, 01:24

The company has net sales revenue of $4.2 million during 2018. The company's records also included the following information: Assets 12/31/17 12/31/18 Property, plant and equipment $ 2.6 million $ 3.1 million Licensing agreements $ 0.8 million $ 0.7 million Goodwill $ 0.6 million $ 0.6 million Investments $ 0.7 million $ 0.8 million What is the company's fixed asset turnover ratio for 2018

+4
Answers (2)
  1. 8 January, 01:32
    0
    The fixed assets turnover is for 2018 is 1.47

    Explanation:

    Fixed asset turnover=net sales/average fixed assets

    net sales is $4.2 million

    average fixed assets=opening fixed assets+closing fixed assets/2

    opening fixed assets is $2.6 million

    closing fixed assets is $3.1 million

    average fixed assets=$2.6 million+$3.1 million/2

    =$2.85 million

    fixed assets turnover=$4.2 million/$2.85 million

    =1.47
  2. 8 January, 01:50
    0
    1.474

    Explanation:

    Fixed Assets Turnover ratio = Net Sales/Average Fixed Assets

    Fixed Assets opening 2.6

    Fixed Assets closing 3.1

    Total fixed assets 5.7/2=2.85

    by putting values in above formula we get=4.2/2.85=1.474

    In fixed assets we only account for property plant and equipment. where as the good will and licensing agreements are intangible assets
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “The company has net sales revenue of $4.2 million during 2018. The company's records also included the following information: Assets ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
A manager who is organized and self-discipline is;
Answers (1)
A newly hired employee at an advertising agency chose the clothes she purchased for work by observing the clothes she saw worn in The Apprentice, a popular television reality show.
Answers (1)
An ideal marketing penetration strategy would be to offer cash backs and discounts on products to customers a. True b. False
Answers (2)
Like many other cities, Denver experienced a sharp decline in construction of new houses in the years following 2006. Many carpenters, roofers, and other skilled workers left the area or found jobs in other industries.
Answers (1)
Which routing protocol does an exterior router use to collect data to build its routing tables?
Answers (1)
New Questions in Business
Who should you' alert that you are interviewing for jobs? A. Your references B. Other possible employers C. Your classmates D. Your present employer
Answers (1)
Common allocation bases are a. direct labor dollars, direct labor hours, and machine dollars b. machine dollars, direct labor dollars, and direct labor hours c. direct labor dollars, direct labor hours, and machine hours d.
Answers (1)
George and Weezy received $30,200 of Social Security benefits this year ($12,000 for George; $18,200 for Weezy). They also received $5,000 of interest from jointly owned City of Ranburne Bonds and dividend income.
Answers (1)
Which of the following is true regarding the high-tech industry today? a. It generally depends on a pool of low-skilled labor. b. It has led to the increased economic development of previously rural areas. c.
Answers (1)
Presented below are three receivables transactions. Indicate whether these receivables are reported as accounts receivable, notes receivable, or other receivables on a balance sheet. -Sold merchandise on account for $64,000 to a customer.
Answers (1)
Home » Business » The company has net sales revenue of $4.2 million during 2018. The company's records also included the following information: Assets 12/31/17 12/31/18 Property, plant and equipment $ 2.6 million $ 3.1 million Licensing agreements $ 0.8 million $ 0.
Sign Up Forgot Password?