Please refer to Table 4-1 for the following questions.
Table 4-1
Stewart Company
Balance Sheet

-Based on the information in Table 4-1,the fixed asset turnover ratio is
A) 1.69.
B) 2.17.
C) 4.39.
D) 4.80.

Question

Please refer to Table 4-1 for the following questions.
Table 4-1
Stewart Company
Balance Sheet
 
-Based on the information in Table 4-1,the fixed asset turnover ratio is
A) 1.69. 
B) 2.17. 
C) 4.39. 
D) 4.80.

Quizplus · Accepted Answer

The fixed asset turnover ratio is calculated by dividing sales by net fixed assets. In this case, sales are $1,000,000 and net fixed assets are $590,000, so the fixed asset turnover ratio is $1,000,000 / $590,000 = 1.69.

Please Refer to Table 4-1 for the Following Questions