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Asset Turnover Financial statement data for the years ending December 31, 20Y3 and 20Y2, for Linstrum Company follow: 20Υ3 20Υ2 Sales $2,310,000 $2,278,000 Total assets: Beginning of year 680,000 660,000 End of year 720,000 680,000 a. Determine the asset turnover for 20Y3 and 20Y2. Round your answers to one decimal place. 20Υ3 20Υ2 Asset turnover b. Is the change in the asset turnover from 20Y2 to 20Y3 favorable or unfavorable? Unfavorablev

Asset Turnover Financial statement data for the years ending December 31, 20Y3 and 20Y2, for Linstrum Company follow: 20Υ3 20Υ2 Sales $2,310,000 $2,278,000 Total assets: Beginning of year 680,000 660,000 End of year 720,000 680,000 a. Determine the asset turnover for 20Y3 and 20Y2. Round your answers to one decimal place. 20Υ3 20Υ2 Asset turnover b. Is the change in the asset turnover from 20Y2 to 20Y3 favorable or unfavorable? Unfavorablev

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Asset Turnover Financial statement data for the years ending December 31, 20Y3 and 20Y2, for Linstrum Company follow: 20Υ3 20Υ2 Sales $2,310,000 $2,278,000 Total assets: Beginning of year 680,000 660,000 End of year 720,000 680,000 a. Determine the asset turnover for 2OY3 and 20Y2. Round your answers to one decimal place. 20Y3 20Υ2 Asset turnover b. Is the change in the asset turnover from 20Y2 to 20Y3 favorable or unfavorable? Unfavorable v Feedback Check My Work (a) Average Total Assets = (Beginning Total Assets + Ending Total Assets) + 2; Divide Sales by Average Total Assets to obtain the ratio. (b) This ratio measures how effectively a business is using its average amount of assets to generate sales. The higher the ratio, the better.
Transcribed Image Text:Asset Turnover Financial statement data for the years ending December 31, 20Y3 and 20Y2, for Linstrum Company follow: 20Υ3 20Υ2 Sales $2,310,000 $2,278,000 Total assets: Beginning of year 680,000 660,000 End of year 720,000 680,000 a. Determine the asset turnover for 2OY3 and 20Y2. Round your answers to one decimal place. 20Y3 20Υ2 Asset turnover b. Is the change in the asset turnover from 20Y2 to 20Y3 favorable or unfavorable? Unfavorable v Feedback Check My Work (a) Average Total Assets = (Beginning Total Assets + Ending Total Assets) + 2; Divide Sales by Average Total Assets to obtain the ratio. (b) This ratio measures how effectively a business is using its average amount of assets to generate sales. The higher the ratio, the better.
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