Asset efficiency ratios for Fischer,Inc.are given in the table below.Based on this information,Fischer,Inc.'s fixed asset turnover ratio is likely to be ________.

Question

Quizplus · Accepted Answer

The Fixed Asset Turnover Ratio is calculated as Net Sales/Total fixed assets. Since the Total Asset Turnover Ratio is 1.75 and the Current Asset Turnover Ratio is 7, it implies that the Fixed Asset Turnover Ratio must be less than 3.50 (the average of the two ratios). Therefore, option B is the correct answer.

Asset Efficiency Ratios for Fischer,Inc