Company X has net sales revenue of $1,250,000,cost of goods sold of $760,000,and all other expenses of $290,000.The beginning balance of stockholders' equity is $400,000 and the beginning balance of fixed assets is $361,000.The ending balance of stockholders' equity is $600,000 and the ending balance of fixed assets is $389,000.The fixed asset turnover ratio is closest to:

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Quizplus · Accepted Answer

The fixed asset turnover ratio is calculated as net sales revenue divided by average fixed assets. Average fixed assets = (Beginning fixed assets + Ending fixed assets) / 2 = ($361,000 + $389,000) / 2 = $375,000. Fixed asset turnover ratio = $1,250,000 / $375,000 = 3.33.

Company X Has Net Sales Revenue of $1,250,000,cost of Goods