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The balance sheet at the end of the year is given below:what is the fixed asset turnover ratio?

User RSquared
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Final answer:

The fixed asset turnover ratio measures a company's efficiency in generating sales from its fixed assets.

Step-by-step explanation:

The fixed asset turnover ratio is a financial metric used to measure a company's efficiency in generating sales from its fixed assets. It is calculated by dividing net sales by average fixed assets. In this case, we do not have the net sales information required to calculate the ratio. However, if we assume that net sales are equal to the equity of $30, the fixed asset turnover ratio would be:


Fixed Asset Turnover Ratio = Net Sales / Average Fixed Assets

Fixed Asset Turnover Ratio = $30 / $100

Fixed Asset Turnover Ratio = 0.3

Therefore, the fixed asset turnover ratio would be 0.3.

User Sonia Hamilton
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