Use the information above to answer the following question.The fixed asset turnover ratio for 2014 is closest to:
A)1.28.
B)1.24.
C)0.75.
D)1.64.

Question

Quizplus · Accepted Answer

The fixed asset turnover ratio is calculated by dividing sales by net fixed assets. In 2014, sales were $1,000,000 and net fixed assets were $780,000. Therefore, the fixed asset turnover ratio is $1,000,000 / $780,000 = 1.28.

Use the Information Above to Answer the Following Question