Sierra Nevada Corp.reported Sales Revenue of $500,000,000 and Sales Discounts of $4,000,000 for the year.The beginning balance of Net Plant and Equipment was $23,000,000,and the ending balance was $27,000,000.What is the fixed asset turnover ratio?
A)18.37
B)18.52
C)20.00
D)19.84

Question

Quizplus · Accepted Answer

Fixed asset turnover ratio = Net revenue ÷ Average net fixed assets
= ($500,000,000 − $4,000,000)÷ [($23,000,000 + $27,000,000)÷ 2] = 19.84 times