**Gross Profit Calculation** During the current year, merchandise is sold for $194,600 cash and $598,000 on account. The cost of merchandise sold is $602,400. What is the amount of the gross profit? Enter your answer: $[__________] **Asset Turnover Analysis** Below is the financial statement data for the years ending December 31, 20Y3 and 20Y2, for Lawson Company: | | 20Y3 | 20Y2 | |----------------|-------------|-------------| | **Sales** | $1,543,500 | $1,356,000 | **Total Assets:** - **Beginning of Year**: - 20Y3: $640,000 - 20Y2: $490,000 - **End of Year**: - 20Y3: $830,000 - 20Y2: $640,000 **Tasks:** a. Determine the asset turnover for 20Y3 and 20Y2. Round your answers to one decimal place. | | 20Y3 | 20Y2 | |------|------|------| | Asset Turnover | | | b. Is the change in the asset turnover from 20Y2 to 20Y3 favorable or unfavorable? - **Unfavorable** ✅ **Instructions for Calculation:** To calculate the asset turnover ratio, use the formula: \[ \text{Asset Turnover} = \frac{\text{Sales}}{\text{Average Total Assets}} \] To find the average total assets, use: \[ \text{Average Total Assets} = \frac{\text{Beginning of Year Assets} + \text{End of Year Assets}}{2} \] Calculate these values for both years to determine the asset turnover ratio.
**Gross Profit Calculation** During the current year, merchandise is sold for $194,600 cash and $598,000 on account. The cost of merchandise sold is $602,400. What is the amount of the gross profit? Enter your answer: $[__________] **Asset Turnover Analysis** Below is the financial statement data for the years ending December 31, 20Y3 and 20Y2, for Lawson Company: | | 20Y3 | 20Y2 | |----------------|-------------|-------------| | **Sales** | $1,543,500 | $1,356,000 | **Total Assets:** - **Beginning of Year**: - 20Y3: $640,000 - 20Y2: $490,000 - **End of Year**: - 20Y3: $830,000 - 20Y2: $640,000 **Tasks:** a. Determine the asset turnover for 20Y3 and 20Y2. Round your answers to one decimal place. | | 20Y3 | 20Y2 | |------|------|------| | Asset Turnover | | | b. Is the change in the asset turnover from 20Y2 to 20Y3 favorable or unfavorable? - **Unfavorable** ✅ **Instructions for Calculation:** To calculate the asset turnover ratio, use the formula: \[ \text{Asset Turnover} = \frac{\text{Sales}}{\text{Average Total Assets}} \] To find the average total assets, use: \[ \text{Average Total Assets} = \frac{\text{Beginning of Year Assets} + \text{End of Year Assets}}{2} \] Calculate these values for both years to determine the asset turnover ratio.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![**Gross Profit Calculation**
During the current year, merchandise is sold for $194,600 cash and $598,000 on account. The cost of merchandise sold is $602,400. What is the amount of the gross profit?
Enter your answer: $[__________]](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F9557ab66-16b0-4733-a12e-96bc38d558c3%2Fd702a011-494f-4371-ad2f-6f5d3ac5c566%2Fbiop08h.jpeg&w=3840&q=75)
Transcribed Image Text:**Gross Profit Calculation**
During the current year, merchandise is sold for $194,600 cash and $598,000 on account. The cost of merchandise sold is $602,400. What is the amount of the gross profit?
Enter your answer: $[__________]
![**Asset Turnover Analysis**
Below is the financial statement data for the years ending December 31, 20Y3 and 20Y2, for Lawson Company:
| | 20Y3 | 20Y2 |
|----------------|-------------|-------------|
| **Sales** | $1,543,500 | $1,356,000 |
**Total Assets:**
- **Beginning of Year**:
- 20Y3: $640,000
- 20Y2: $490,000
- **End of Year**:
- 20Y3: $830,000
- 20Y2: $640,000
**Tasks:**
a. Determine the asset turnover for 20Y3 and 20Y2. Round your answers to one decimal place.
| | 20Y3 | 20Y2 |
|------|------|------|
| Asset Turnover | | |
b. Is the change in the asset turnover from 20Y2 to 20Y3 favorable or unfavorable?
- **Unfavorable** ✅
**Instructions for Calculation:**
To calculate the asset turnover ratio, use the formula:
\[ \text{Asset Turnover} = \frac{\text{Sales}}{\text{Average Total Assets}} \]
To find the average total assets, use:
\[ \text{Average Total Assets} = \frac{\text{Beginning of Year Assets} + \text{End of Year Assets}}{2} \]
Calculate these values for both years to determine the asset turnover ratio.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F9557ab66-16b0-4733-a12e-96bc38d558c3%2Fd702a011-494f-4371-ad2f-6f5d3ac5c566%2Fjy4dv7g.jpeg&w=3840&q=75)
Transcribed Image Text:**Asset Turnover Analysis**
Below is the financial statement data for the years ending December 31, 20Y3 and 20Y2, for Lawson Company:
| | 20Y3 | 20Y2 |
|----------------|-------------|-------------|
| **Sales** | $1,543,500 | $1,356,000 |
**Total Assets:**
- **Beginning of Year**:
- 20Y3: $640,000
- 20Y2: $490,000
- **End of Year**:
- 20Y3: $830,000
- 20Y2: $640,000
**Tasks:**
a. Determine the asset turnover for 20Y3 and 20Y2. Round your answers to one decimal place.
| | 20Y3 | 20Y2 |
|------|------|------|
| Asset Turnover | | |
b. Is the change in the asset turnover from 20Y2 to 20Y3 favorable or unfavorable?
- **Unfavorable** ✅
**Instructions for Calculation:**
To calculate the asset turnover ratio, use the formula:
\[ \text{Asset Turnover} = \frac{\text{Sales}}{\text{Average Total Assets}} \]
To find the average total assets, use:
\[ \text{Average Total Assets} = \frac{\text{Beginning of Year Assets} + \text{End of Year Assets}}{2} \]
Calculate these values for both years to determine the asset turnover ratio.
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