Chapter 9, Problem 9.9BPE

a.

To determine

Fixed Asset turnover: It 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. The following is the formula to calculate the ratio:

$\text{Fixed}\text{Asset turnover }=\frac{\text{Sales}}{\text{Average total}\text{fixed assets}}$

the fixed asset Turnover Ratio for 2016 and 2015.

b.

To determine

To indicate: The trend of the Company D from 2015 to 2016 on the basis of fixed asset turnover ratio.