Fixed Asset turnover: Fixed asset turnover is a ratio that measures the productive capacity of the fixed assets to generate the sales revenue for the company. Thus, it shows the relationship between the net sales and the average total fixed assets. Formula: Fixed asset turnover ratio = Net sales Average total fixed assets To Calculate: The fixed-asset turnover ratio of Corporation N for the year 2016.

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Chapter 10, Problem 10.13E

(1)

To determine

Fixed Asset turnover:

Fixed asset turnover is a ratio that measures the productive capacity of the fixed assets to generate the sales revenue for the company. Thus, it shows the relationship between the net sales and the average total fixed assets.

Formula: Fixed asset turnover ratio=Net salesAverage total fixed assets

To Calculate: The fixed-asset turnover ratio of Corporation N for the year 2016.

(2)

To determine

To Discuss: The way in which this ratio would be interpreted.

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