1.
Concept Introduction:
Total asset turnover: The ratio that measures a company’s ability to use its asset to generate revenue is stated as total assets turnover. It is also used to analyze how efficiently the company has used its assets; total asset turnover is calculated by dividing net sales by average total assets.
The total assets turnover for year 2.
2.
Concept Introduction:
Total asset turnover: The ratio that measures a company’s ability to use its asset to generate revenue is stated as total assets turnover. It is also used to analyze how efficiently the company has used its assets; total asset turnover is calculated by dividing net sales by average total assets.
The comparison of A’s total asset turnover with its competitor.
Want to see the full answer?
Check out a sample textbook solutionChapter 8 Solutions
FINANCIAL & MANAGERIAL ACCOUNTING (ACCES
- There are 2 questions, Please read and answer question carefully.arrow_forwardi need helparrow_forwardLok Company reports net sales of $5,562,000 for Year 2 and $7,019,000 for Year 3. End-of-year balances for total assets are Year 1, $1,658,000; Year 2, $1,768,000; and Year 3, $1,949,000. (1) Compute Lok's total asset turnover for Year 2 and Year 3. (2) Lok's competitor has a Total Asset Turnover of 3.0 during Year 3. Is Lok performing better or worse than its competitor on the basis of total asset turnover?arrow_forward
- Lok Co. reports net sales of $5,856,480 for Year 2 and $8,679,690 for Year 3. End-of-year balances for total assets are Year 1, $1,686,000; Year 2, $1,800,000; and Year 3, $1,982,000. (a) Compute Lok’s total asset turnover for Year 2 and Year 3. (b) Lok’s competitor has a turnover of 3.0. Is Lok performing better or worse than its competitor on the basis of total asset turnover?arrow_forwardThe following are financial data taken from the annual report of Foundotos Company: Year 2 $134,448 51,981 37,154 57,504 Net sales Gross property, plant and equipment Accumulated depreciation Intangible assets (net) A. Calculate the following ratios for Year 1 and Year 2: 1. Fixed asset turnover 2. Accumulated depreciation divided-by-gross fixed assets B. What do the trends in these ratios reveal about Foundotos? Year 1 $130,060 47,744 34,180 36,276arrow_forwardwant answerarrow_forward
- Aardvark & Co. has sales of $291,200, cost of goods sold of $163,300, net profit of $11,360, net fixed assets of $154, 500, and current assets of $89, 500. What is the total asset turnover rate? a) 1.19 b) 1.11 c) 1.24 d) 1.08 e) 1.28arrow_forwardThe 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 3,600arrow_forward6. Morgan Company reported beginning and ending total assets of $280,000 and $140,000, respectively. Its net sales for the year was $231,000. What was Morgan Company's asset turnover ratio? Begin by selecting the formula to calculate the company's asset turnover ratio. Then enter the amounts and calculate the ratio. (Round the asset turnover ratio to two decimal places, X.XX.) ÷ = Asset turnover ratioarrow_forward
- The following information is from Lacy's Inc. $ millions Prior Fiscal Year Current Fiscal Year Net Year-End Assets Revenue Income $21,330 14,403 $18,955 $1,070 a. Compute the asset turnover ratio for the current fiscal year. b. Compute the return on assets ratio for the current fiscal year. Numerator a. Asset Turnover Ratio $ Check b. Return on Assets Ratio $ Numerator Denominator / $ Denominator / $ || Result Resultarrow_forwardfill out the missing blank Billy’s BBQ reported sales of $750,000 and net income of $29,500. Billy’s also reported ending total assets of $497,000 and beginning total assets of $390,000. Required: Calculate the return on assets, the profit margin, and the asset turnover ratio for Billy's BBQ.arrow_forwardThe following are financial data taken from the annual report of Bree & Company: Year 2 Year 1 Net sales $134,448 $130,060 Gross property, plant and equipment Accumulated depreciation 57,179 52,518 37,154 34,180 Intangible assets (net) 57,504 36,276 A. Calculate the following ratios for Year 1 and Year 2: 1. Fixed asset turnover 2. Accumulated depreciation divided-by-gross fixed assets B. What do the trends in these ratios reveal about Bree & Company?arrow_forward
- Financial And Managerial AccountingAccountingISBN:9781337902663Author:WARREN, Carl S.Publisher:Cengage Learning,Principles of Accounting Volume 2AccountingISBN:9781947172609Author:OpenStaxPublisher:OpenStax CollegeSurvey of Accounting (Accounting I)AccountingISBN:9781305961883Author:Carl WarrenPublisher:Cengage Learning
- Financial AccountingAccountingISBN:9781337272124Author:Carl Warren, James M. Reeve, Jonathan DuchacPublisher:Cengage Learning