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Select financial statement data for two recent years for Davenport Company are as follows:   20Y5 20Y4 Sales $1,800,000   $1,170,000   Fixed assets:         Beginning of year 690,000   610,000   End of year 750,000   690,000   a. Determine the fixed asset turnover ratio for 20Y4 and 20Y5. Round to one decimal place.   20Y5 20Y4 Fixed Asset Turnover Ratio                                 b. Does the change in the fixed asset turnover ratio from 20Y4 to 20Y5 indicate a favorable or an unfavorable change?

Select financial statement data for two recent years for Davenport Company are as follows:   20Y5 20Y4 Sales $1,800,000   $1,170,000   Fixed assets:         Beginning of year 690,000   610,000   End of year 750,000   690,000   a. Determine the fixed asset turnover ratio for 20Y4 and 20Y5. Round to one decimal place.   20Y5 20Y4 Fixed Asset Turnover Ratio                                 b. Does the change in the fixed asset turnover ratio from 20Y4 to 20Y5 indicate a favorable or an unfavorable change?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Fixed asset turnover ratio

Select financial statement data for two recent years for Davenport Company are as follows:

  20Y5 20Y4
Sales $1,800,000   $1,170,000  
Fixed assets:        
Beginning of year 690,000   610,000  
End of year 750,000   690,000  

a. Determine the fixed asset turnover ratio for 20Y4 and 20Y5. Round to one decimal place.

  20Y5 20Y4
Fixed Asset Turnover Ratio                                

b. Does the change in the fixed asset turnover ratio from 20Y4 to 20Y5 indicate a favorable or an unfavorable change?

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