Pitt reported the following information for 2021 and 2022:   2021 2022 Property, plant, and equipment, cost $550,000   $ 550,000   Accumulated depreciation 170,000   220,000   Net sales     4,600,000   Depreciation expense     50,000     Required: Compute Pitt's tangible capital asset turnover ratio and the average age of tangible depreciable capital assets. Round "Tangible Capital Asset Turnover" to two decimal places and "Average Age of Tangible Depreciable Capital Asset" to one decimal place.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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29.

Analyzing Fixed Assets

Pitt reported the following information for 2021 and 2022:

  2021 2022
Property, plant, and equipment, cost $550,000   $ 550,000  
Accumulated depreciation 170,000   220,000  
Net sales     4,600,000  
Depreciation expense     50,000  

 

Required:

Compute Pitt's tangible capital asset turnover ratio and the average age of tangible depreciable capital assets. Round "Tangible Capital Asset Turnover" to two decimal places and "Average Age of Tangible Depreciable Capital Asset" to one decimal place.

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