The Wilson Company has provided the following information:
Net sales,$100,000;
Net operating income,$40,000;
Net income,$20,000;
Average total assets,$120,000;
Average net fixed assets; $80,000.
What is Wilson's fixed asset turnover ratio?
A)0.83
B)1.25
C)0.25
D)0.50.

Question

The Wilson Company has provided the following information:
Net sales,$100,000;
 Net operating income,$40,000;
Net income,$20,000;
Average total assets,$120,000;
Average net fixed assets; $80,000.
What is Wilson's fixed asset turnover ratio?
A)0.83
B)1.25
C)0.25
D)0.50.

Quizplus · Accepted Answer

Fixed asset turnover ratio (1.25) = Net sales ($100,000) / Average net fixed assets ($80,000)

The Wilson Company Has Provided the Following Information