Salieri's Supply Company has net sales of $1,210,000, net income of $87,000, average current assets of $49,000, average fixed assets of $186,000, and average total assets of $235,000. Salieri's fixed asset turnover ratio is: (Round your final answer to two decimal places.)
A)5.15.
B)0.15.
C)6.51.
D)24.69.

Question

Quizplus · Accepted Answer

Fixed Asset Turnover Ratio = Net Sales / Average Fixed Assets

Net Sales = $1,210,000 
Average Fixed Assets = $186,000

Fixed Asset Turnover Ratio = $1,210,000 / $186,000 = 6.51

Therefore, the fixed asset turnover ratio for Salieri's Supply Company is 6.51.

Salieri's Supply Company Has Net Sales of $1,210,000, Net Income