agenowcon Calculator Fill in the missing numbers using the f

agenow.con Calculator Fill in the missing numbers using the formula for Fixed Asset Turnover: Company A $5,000,000 $450,000 $800,000 Company B $720,000 $275,000 Company C Company D Net Sales $900,000 Beginning Fixed Assets Ending Fixed Assets Fixed Asset Turnover $380,000 $420,000 2.6 times $310,000 times 2.4 times 3 times

Solution

Company A Company B Company C Company D Net sales 5,000,000 720,000 900,000 1040000 Beginning FixedAssets 450000 275000 290000 380000 Ending FixedAssets 800000 325000 310000 420000 Fixed AssetTurnover 8 2.4 3 2.6 Explanation Fixed assets turnover ratio = net sales/ avg fixed assets Company A (500000/(450000+800000)/2) = 8 Company B (720000/(275000+x)/2) = 2.4 1440000/(275000+x) = 2.4 600000 = 275000+x x = 325000 Company C (900000/(x+310000)/2)=3 1800000/(x+310000)= 3 600000=x+310000 x=290000 Company D ((380000+420000)/2)*2.6