Peppertree Co.'s financial statements on December 31,2018,showed the following: What is the fixed asset turnover for 2018 (rounded to two decimal places)?
A)3.93
B)2.60
C)4.10
D)2.79

Name: Peppertree Co.'s financial statements on December 31,2018,showed the following: What is the fixed asset turnover for 2018 (rounded to two decimal places)? A)3.93 B)2.60 C)4.10 D)2.79
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Question

Peppertree Co.'s financial statements on December 31,2018,showed the following:  What is the fixed asset turnover for 2018 (rounded to two decimal places)?
A)3.93 
B)2.60 
C)4.10 
D)2.79

Quizplus · Accepted Answer

Fixed asset turnover = Net Sales ÷ Average net fixed assets.
$550,000 ÷ [($146,000 + $134,000)÷ 2] = 3.93 (rounded)