Campbell Co.has net sales revenue of $1,000,000,cost of goods sold of $680,000,and all other expenses of $232,000.The beginning balance of stockholders' equity is $320,000 and the beginning balance of fixed assets is $288,800.The ending balance of stockholders' equity is $480,000 and the ending balance of fixed assets is $311,200.The fixed asset turnover ratio is closest to:
A)0.53.
B)2.50.
C)3.33.
D)0.80.

Question

Quizplus · Accepted Answer

Fixed asset turnover = Net revenue ÷ Average net fixed assets
= $1,000,000 ÷ [($288,800 + $311,200)÷ 2] = 3.33