Blue Spruce Company and Swifty Corporation, two corporations of roughly the same size, are both involved in the manufacture of in-line skates. Each company depreciates its plant assets using the straight-line approach. An investigation of their fınancial statements reveals the following information. Swifty Blue Spruce Co. Corp. Net income $ 750,000 $1,050,000 Net sales 1,270,000 1,092,000 Average total assets 2,540,000 1,950,000 Average plant assets 1,760,000 1,020,000 (a) For each company, calculate the asset turnover. (Round answers to 2 decimal places, e.g. 0.60.) Blue Spruce Co. Swifty Corp. Asset turnover times times
Blue Spruce Company and Swifty Corporation, two corporations of roughly the same size, are both involved in the manufacture of in-line skates. Each company depreciates its plant assets using the straight-line approach. An investigation of their fınancial statements reveals the following information. Swifty Blue Spruce Co. Corp. Net income $ 750,000 $1,050,000 Net sales 1,270,000 1,092,000 Average total assets 2,540,000 1,950,000 Average plant assets 1,760,000 1,020,000 (a) For each company, calculate the asset turnover. (Round answers to 2 decimal places, e.g. 0.60.) Blue Spruce Co. Swifty Corp. Asset turnover times times
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Blue Spruce Company and Swifty Corporation, two corporations of roughly the same size, are both involved in the manufacture of
in-line skates. Each company depreciates its plant assets using the straight-line approach. An investigation of their financial
statements reveals the following information.
Swifty
Corp.
Blue Spruce Co.
Net income
$ 750,000
$1,050,000
Net sales
1,270,000
1,092,000
Average total assets
2,540,000
1,950,000
Average plant assets
1,760,000
1,020,000
(a)
For each company, calculate the asset turnover. (Round answers to 2 decimal places, e.g. 0.60.)
Blue Spruce Co.
Swifty Corp.
Asset turnover
times
times
II
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