Lok Co. reports net sales of $5,856,480 for Year 2 and $8,679,690 for Year 3. End-of-year balances for total assets are Year 1, $1,686,000; Year 2, $1,800,000; and Year 3, $1,982,000. (a) Compute Lok’s total asset turnover for Year 2 and Year 3. (b) Lok’s competitor has a turnover of 3.0. Is Lok performing better or worse than its competitor on the basis of total asset turnover?
Lok Co. reports net sales of $5,856,480 for Year 2 and $8,679,690 for Year 3. End-of-year balances for total assets are Year 1, $1,686,000; Year 2, $1,800,000; and Year 3, $1,982,000. (a) Compute Lok’s total asset turnover for Year 2 and Year 3. (b) Lok’s competitor has a turnover of 3.0. Is Lok performing better or worse than its competitor on the basis of total asset turnover?
Financial And Managerial Accounting
15th Edition
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:WARREN, Carl S.
Chapter9: Long-term Assets: Fixed And Intangible
Section: Chapter Questions
Problem 5MAD
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Lok Co. reports net sales of $5,856,480 for Year 2 and $8,679,690 for Year 3. End-of-year balances for
total assets are Year 1, $1,686,000; Year 2, $1,800,000; and Year 3, $1,982,000. (a) Compute Lok’s total
asset turnover for Year 2 and Year 3. (b) Lok’s competitor has a turnover of 3.0. Is Lok performing better
or worse than its competitor on the basis of total asset turnover?
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