(a)
Concept Introduction
Assets Turnover: Assets turnover is the ratio that provides a measure of the efficiency of a business to generate sales. This is calculated as total sales or revenue divided by average assets. This ratio is used by investors to find how a company can use its resources to generate sales.
The total assets turnover for Year 2 and Year 3.
(b)
Concept Introduction
Assets Turnover: Assets turnover is the ratio that provides a measure of the efficiency of a business to generate sales. This is calculated as total sales or revenue divided by average assets. This ratio is used by investors to find how a company can use its resources to generate sales.
Performance of L. Co. as compared to its competitors.
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FINANCIAL & MANAGERIAL ACCOUNTING (ACCES
- 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_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_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_forward
- The 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_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_forwardBaldwin, Inc. had net sales of $52,200,000 for the year ended May 31, 2024. Its beginning and ending total assets were $55,200,000 and $88,800,000, respectively. Determine Baldwin's asset turnover ratio for year ended May 31, 2024. (Round the asset turnover ratio to two decimal places, X.XX.) Asset turnover ratio Carrow_forward
- Select 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_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 timesarrow_forwardClark Corporation reported beginning net fixed assets of $94,150, ending net fixed assets of $103,626, accumulated depreciation of $49,133, net sales of $212,722, and depreciation expense of $12,315. Required: Compute Clark Corporation's fixed asset turnover ratio and the average age of its fixed assets.arrow_forward
- Aneko Company reports the following: net sales of $17,500 for Year 2 and $16,625 for Year 1; end-of-year total assets of $18,000 for Year 2 and $16,500 for Year 1. 1. Compute its total asset turnover for Year 2. 2. Aneko's competitor has a turnover of 2.0. Is Aneko performing better or worse than its competitor based on total asset turnover? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute its total asset turnover for Year 2. Choose Numerator: 1 1 1 Total asset turnover Choose Denominator: = = = Total asset turnover Total asset turnover timesarrow_forwardAneko Company reports the following: net sales of $18,000 for Year 2 and $17,100 for Year 1; end-of-year total assets of $18,200 for Year 2 and $16,800 for Year 1. Compute its total asset turnover for Year 2. Aneko’s competitor has a turnover of 2.0. Is Aneko performing better or worse than its competitor based on total asset turnover?arrow_forwardAsset turnover ratioFinancial statement data for years ended December 31, 20Y3 and 20Y2, for EdisonCompany follow:a. Determine the asset turnover ratio for 20Y3 and 20Y2.b. Is the change in the asset turnover ratio from 20Y2 to 20Y3 favorable orunfavorable?arrow_forward
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