Mathai Company has sales of $4,800,000 for the current year. The book value of its fixed assets at the beginning of the year was $1,450,000 and at the end of the year was $1,600,000. The fixed asset turnover ratio for Mathai is
A) 3.0
B) 3.1
C) 3.2
D) 3.3

Question

Quizplus · Accepted Answer

Fixed Asset Turnover Ratio = Sales / Average Book Value of Fixed Assets = $4,800,000 / [($1,450,000 + $1.600,000) / 2)] = 3.1

Mathai Company Has Sales of $4,800,000 for the Current Year