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?