Financial statement data for the years ended December 31 for Parker Corporation are as follows:
$\begin{array}{lrr}
& \text { Current Year } & \text { Prior Year } \
\text { Sales } & \$ 2,595,600 & \$ 2,409,498\\text { Fixed assets (net): }\
\text { Beginning of the year } & \$ 901,070 & \$ 820,000 \
\text { End of the year } & 829,330 & 901,070
\end{array}$
(a) Determine the fixed asset turnover for the current and prior years.
(b) Does the change in fixed asset turnover from the prior year to the current year indicate a favorable or
unfavorable trend?

Question

Financial statement data for the years ended December 31 for Parker Corporation are as follows:
​ $\begin{array}{lrr} 
& \text { Current Year } & \text { Prior Year } \
\text { Sales } & \$ 2,595,600 & \$ 2,409,498\\text { Fixed assets (net): }\
\text { Beginning of the year } & \$ 901,070 & \$ 820,000 \
\text { End of the year } & 829,330 & 901,070
\end{array}$ ​
(a) Determine the fixed asset turnover for the current and prior years.
(b) Does the change in fixed asset turnover from the prior year to the current year indicate a favorable or
unfavorable trend?

Quizplus · Accepted Answer

The Answer of Financial statement data for the years ended December 31 for Parker Corporation are as follows:
​ $\begin{array}{lrr} 
& \text { Current Year } & \text { Prior Year } \
\text { Sales } & \$ 2,595,600 & \$ 2,409,498\\text { Fixed assets (net): }\
\text { Beginning of the year } & \$ 901,070 & \$ 820,000 \
\text { End of the year } & 829,330 & 901,070
\end{array}$ ​
(a) Determine the fixed asset turnover for the current and prior years.
(b) Does the change in fixed asset turnover from the prior year to the current year indicate a favorable or
unfavorable trend?

Financial Statement Data for the Years Ended December 31 for Parker