The following information is available from the accounting records of the Bright Company:

What is the fixed asset turnover ratio?
A) 0.10 times
B) 3 times
C) 3.27 times
D) 10 times

Name: The following information is available from the accounting records of the Bright Company: What is the fixed asset turnover ratio? A) 0.10 times B) 3 times C) 3.27 times D) 10 times
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Question

The following information is available from the accounting records of the Bright Company:

What is the fixed asset turnover ratio?
A) 0.10 times 
B) 3 times 
C) 3.27 times 
D) 10 times

Quizplus · Accepted Answer

Fixed Asset Turnover Ratio = Net Sales / Average Fixed Assets
= 13,500,000 / (4,125,000 + 3,750,000) / 2
= 3.27 times

The Following Information Is Available from the Accounting Records of the Bright