Larry's Lab has sales of $35,750, net fixed assets of $14,500, current assets of $12,300, and cost of goods sold of $30,000. Which of the following is the fixed asset turnover ratio for the business?
A) 1.18 times
B) 1.19 times
C) 2.47 times
D) 2.91 times

Question

Quizplus · Accepted Answer

The fixed asset turnover ratio is calculated by dividing sales by net fixed assets. For Larry's Lab, this is $35,750 / $14,500 = 2.47 times.

Larry's Lab Has Sales of $35,750, Net Fixed Assets of $14,500