Survey of Accounting (Accounting I)
8th Edition
ISBN: 9781305961883
Author: Carl Warren
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Question
Chapter 7, Problem 7.7.1MBA
To determine
Concept Introduction:
Asset Turnover Ratio:
Asset Turnover Ratio is an efficiency ratio that represents the sales earned on the average assets invested in the business. It is calculated by dividing the Sales by Average total assets. The formulas to calculate the Asset Turnover Ratio is as follows:
To Calculate:
The Asset Turnover Ratios
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Asset turnover
United Continental Holdings, Inc., (UAL), operates passenger service throughout the world. The following data (in millions) were adapted from a recent financial statement of United.
Sales (revenue)
$38,901
Average property, plant, and equipment
17,219
Average intangible assets
8,883
1. Compute the asset turnover. Round your answer to two decimal places.fill in the blank 1
2. If Delta, has a recent asset turnover of 1.11, United Continental Holdings, Inc. is generating __________ more sales per average dollar of invested long-term operating assets than Delta. (Options: $1.49, $1.73. $1,995, $0.38)
The following information is available for Coulibaly Company:
Total sales
Total assets: Beginning of year
End of year
Year 1
Year 2
Asset
Compute the asset turnover ratio for Coulibaly Company for Year 1 and Year 2. Round your answers to two decimal places.
Turnover Ratio
3,600
Year 2
12500
$16,700
3,600
12,500
Year 1
$12,800
2,700
3,600
Asset turnover
A company reports the following:
Sales
$1,304,800
Average total assets (excluding long-term investments)
815,500
Determine the asset turnover ratio. If required, round your answer to one decimal place.
Chapter 7 Solutions
Survey of Accounting (Accounting I)
Ch. 7 - Which of the following expenditures incurred in...Ch. 7 - What is the amount of depreciation, using the...Ch. 7 - An example of an accelerated depreciation method...Ch. 7 - Prob. 4SEQCh. 7 - Prob. 5SEQCh. 7 - Which of the following qualities are...Ch. 7 - Prob. 2CDQCh. 7 - Prob. 3CDQCh. 7 - Prob. 4CDQCh. 7 - Are the amounts at which fixed assets are reported...
Ch. 7 - a. Does the recognition of depreciation in the...Ch. 7 - Backyard Company purchased a machine that has a...Ch. 7 - Is it necessary for a business to use the same...Ch. 7 - Prob. 9CDQCh. 7 - Prob. 10CDQCh. 7 - Prob. 11CDQCh. 7 - Prob. 12CDQCh. 7 - Prob. 13CDQCh. 7 - Prob. 14CDQCh. 7 - Prob. 15CDQCh. 7 - Costs of acquiring fixed assets Summer Wilks owns...Ch. 7 - Determine cost of land Snowy Ridges Ski Co. has...Ch. 7 - Determine cost of land Four Corners Delivery...Ch. 7 - Nature of depreciation Custer Construction Co....Ch. 7 - Straight-line depreciation rates Convert each of...Ch. 7 - Straight-line depreciation A refrigerator used by...Ch. 7 - Depreciation by two methods A Caterpillar tractor...Ch. 7 - Depreciation by two methods Equipment acquired at...Ch. 7 - Partial-year depreciation Sandblasting equipment...Ch. 7 - Capital and revenue expenditures About Time...Ch. 7 - Capital and revenue expenditures Dehra Bundy owns...Ch. 7 - Prob. 7.12ECh. 7 - Sale of asset Equipment acquired on January 9,...Ch. 7 - Disposal of fixed asset Equipment acquired on...Ch. 7 - Recording depletion MacLean Mining Co. acquired...Ch. 7 - Prob. 7.16ECh. 7 - Prob. 7.17ECh. 7 - Book value of fixed assets Apple. Inc., designs,...Ch. 7 - Balance sheet presentation List the errors you...Ch. 7 - Prob. 7.1.1PCh. 7 - Allocate payments and receipts to fixed asset...Ch. 7 - Prob. 7.1.3PCh. 7 - Compare three depreciation methods Bayside...Ch. 7 - Depreciation by two methods; partial years Knife...Ch. 7 - Depreciation by two methods; sale of fixed asset...Ch. 7 - Depreciation by two methods; sale of fixed asset...Ch. 7 - Depreciation by two methods; sale of fixed asset...Ch. 7 - Amortization and depletion entries Data related to...Ch. 7 - Prob. 7.5.2PCh. 7 - Prob. 7.1MBACh. 7 - Prob. 7.2.1MBACh. 7 - Prob. 7.2.2MBACh. 7 - Prob. 7.3.1MBACh. 7 - Prob. 7.3.2MBACh. 7 - Prob. 7.3.3MBACh. 7 - Prob. 7.3.4MBACh. 7 - Prob. 7.4MBACh. 7 - Prob. 7.5.1MBACh. 7 - Asset turnover United Continental Holdings. Inc.,...Ch. 7 - Prob. 7.6.1MBACh. 7 - Prob. 7.6.2MBACh. 7 - Prob. 7.7.1MBACh. 7 - Prob. 7.7.2MBACh. 7 - Prob. 7.8.1MBACh. 7 - Prob. 7.8.2MBACh. 7 - Prob. 7.9.1MBACh. 7 - Prob. 7.9.2MBACh. 7 - Prob. 7.1CCh. 7 - Prob. 7.2CCh. 7 - Prob. 7.3.1CCh. 7 - Prob. 7.3.2CCh. 7 - Effect of depreciation on net income Einstein...Ch. 7 - Prob. 7.4CCh. 7 - Prob. 7.5CCh. 7 - Prob. 7.6C
Knowledge Booster
Similar questions
- Verizon Communications Inc. is a major telecommunications company in the United States. Two recent balance sheets for Verizon disclosed the following information regarding fixed assets: Verizons revenue for the year was 131,620 million. Assume that the fixed asset turnover ratio for the telecommunications industry averages approximately 1.1. a. Determine Verizons fixed asset turnover ratio. Round to one decimal place. b. Interpret this ratio with respect to the industry average.arrow_forwardThe Home Depot reported the following data (in millions) in its recent financial statements: a. Determine the asset turnover for The Home Depot for Year 2 and Year 1. Round to two decimal places. b. What conclusions can be drawn concerning the trend in the ability of The Home Depot to effectively use its assets to generate sales?arrow_forwardIn a recent annual report, Target reported beginning total assets of $44.1 billion, ending total assets of $44.5 billion, and net sales of $63.4 billion.Compute Target’s asset turnover ratio. (Round answer to 2 decimal places, e.g. 5.60.) Target’s asset turnover ratio enter the target’s asset turnover ratio in number of times rounded to 2 decimal places timesarrow_forward
- Asset turnover ratio Financial statement data for years ended December 31, 20Y3 and 20Y2, for Edison Company follow: 20Y3 20Y2 Sales $1,950,000 $1,564,000 Total assets: Beginning of year 740,000 620,000 End of year 820,000 740,000 a. Determine the asset turnover ratio for 20Y3 and 20Y2. Round answers to one decimal place. 20Y3 20Y2 Asset turnover fill in the blank 1 fill in the blank 2 b. Is the change in the asset turnover ratio from 20Y2 to 20Y3 favorable or unfavorable?arrow_forwardFixed asset turnover ratio Verizon Communications Inc. is a major telecommunications companyin the United States. Two recent balance sheets for Verzion disclosedthe following information regarding fixed assets: Verizon's revenue for the years was $131,620 million. Assume that thefixed asset turnover ratio fort the telecommunications industry averagesapproximately 1.1 a. Determine Verizon's fixed asset turnover ratio. Round to one decimal place. b. Interpet this ratio with respect to the industry average.arrow_forwardCalculate Company Y's total asset turnover based on the following information for the current year: (Round your final answer to two decimal places.) question attached in ss thanks thoehe tarrow_forward
- Asset turnover A company reports the following: Sales $1,189,650 Average total assets (excluding long-term investments) 566,500 Determine the asset turnover ratio. If required, round your answer to one decimal place.fill in the blank 1arrow_forwardThe following information is available from the annual reports of Blossom Company and Crane Company. (Amounts in millions) Blossom Crane Net Income $1,824 $2,413 Sales 43,035 64,239 Total Assets (average) 40,242 68,704 Based on the preceding information, compute the following values for each company: (Round asset turnover ratio to 2 decimal places, e.g. 15.25 and return on assets to 1 decimal place, e.g. 15.2%.) BlossomCrane1. Asset turnover ratio enter the asset turnover rounded to 1 decimal placetimesenter the asset turnover rounded to 1 decimal placetimes2. Return on assets enter the return on assets in percentages rounded to 2 decimal places%enter the return on assets in percentages rounded to 2 decimal places%arrow_forwardWhere would you find the financial statements for Costco? https://motley.com https://wallstreet.com https://investor.costco.com https://sec.gov Endotherm Company produced revenue of $120,000. Beginning Assets for the period were $200,000 and Ending Assets were $250,000. What is the Total Asset Turnover Ratio for this period? .53 1.87 .48 .26 What is the Total Asset Turnover Ratio for a company with $120,000 in annual sales, beginning Assets of $250,000 and ending Assets of $200,000? .48 1.34 .26 .53 The efficiency ratio that shows how efficiently a company uses its cash to generate revenue is: Accounts Receivable Turnover Ratio. Total Asset Receivable Turnover Ratio. Cash Turnover Ratio. Inventory Turnover Ratio. please answer all questions. explainte answwer provide me with correct optionarrow_forward
- The 2025 Annual Report of Windsor International contains the following information: (in millions) Total assets Total liabilities Net sales Net income (a) (b) June 29, 2025 $1,399 1,106 2,961 Compute the following ratios for Windsor International for 2025: (c) 132 June 27, 2024 $1,487 1,108 2,941 140 Asset turnover ratio. (Round answer to 3 decimal places, e.g. 0.851 times.) Rate of return on assets. (Round answer to 2 decimal places, e.g. 4.87.) Profit margin on sales. (Round answer to 2 decimal places, e.g. 4.87.) times % %arrow_forwardSelect financial statement data for two recent years for Davenport Company are as follows: Line Item Description 20Y5 20Y4 Sales $2,011,500 $1,088,000 Fixed assets: Beginning of year 720,000 640,000 End of year 770,000 720,000 a. Determine the fixed asset turnover ratio for 20Y4 and 20Y5. Round your answers to one decimal place. Line Item Description 20Y5 20Y4 Fixed Asset Turnover Ratio fill in the blank 1 of 2 fill in the blank 2 of 2arrow_forwardAsset turnover Financial statement data for years ending December 31, 2019 and 2018, for Edison Company follow: 2019 2018 Sales $1,491,000 $1,196,000 Total assets: beginning of year 590,000 450,000 end of year 830,000 590,000 a. Determine the asset turnover for 2019 and 2018. Round your answers to one decimal place. 2019 2018 Ratio of sales to assets b. Does the change in the asset turnover from 2018 to 2019 indicate a favorable or an unfavorable trend?arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Survey of Accounting (Accounting I)AccountingISBN:9781305961883Author:Carl WarrenPublisher:Cengage Learning
Financial And Managerial AccountingAccountingISBN:9781337902663Author:WARREN, Carl S.Publisher:Cengage Learning,
Cornerstones of Financial AccountingAccountingISBN:9781337690881Author:Jay Rich, Jeff JonesPublisher:Cengage Learning
Financial AccountingAccountingISBN:9781305088436Author:Carl Warren, Jim Reeve, Jonathan DuchacPublisher:Cengage Learning
Financial AccountingAccountingISBN:9781337272124Author:Carl Warren, James M. Reeve, Jonathan DuchacPublisher:Cengage Learning
Managerial AccountingAccountingISBN:9781337912020Author:Carl Warren, Ph.d. Cma William B. TaylerPublisher:South-Western College Pub
Survey of Accounting (Accounting I)
Accounting
ISBN:9781305961883
Author:Carl Warren
Publisher:Cengage Learning
Financial And Managerial Accounting
Accounting
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:Cengage Learning,
Cornerstones of Financial Accounting
Accounting
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Cengage Learning
Financial Accounting
Accounting
ISBN:9781305088436
Author:Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:Cengage Learning
Financial Accounting
Accounting
ISBN:9781337272124
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Cengage Learning
Managerial Accounting
Accounting
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:South-Western College Pub