The Wilson Company has provided the following information: • Net sales,$200,000
• Net operating income,$40,000
• Net income,$20,000
• Average total assets,$125,000
• Average net fixed assets;$80,000
What is Wilson's fixed asset turnover ratio?
A)1.60
B)2.50
C)0.25
D)0.50

Question

Quizplus · Accepted Answer

Fixed Asset Turnover Ratio = Net Sales / Average Net Fixed Assets
= $200,000 / $80,000
= 2.50

The Wilson Company Has Provided the Following Information: • Net