PE 9-9A Fixed asset turnover ratio
Financial statement data for years ending December 31 for DePuy Company are shown below.
|
2014 |
2013 |
|
|
Net sales |
$5,510,000 |
$4,880,000 |
|
Fixed assets: |
||
|
Beginning of year |
1,600,000 |
1,450,000 |
|
End of year |
2,200,000 |
1,600,000 |
a. Determine the fixed asset turnover ratio for 2014 and 2013.
b. Does the change in the fixed asset turnover ratio from 2013 to 2014 indicate a favorable or an unfavorable trend?