FINANCIAL+MANAG.ACCT.
9th Edition
ISBN: 9781260728774
Author: Wild
Publisher: RENT MCG
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Chapter 8, Problem 2.1AA
1.
To determine
Concept Introduction:
Asset turnover: The ratio that measures efficiency in the utilization of assets in generating sales revenue for the company is referred to as asset turnover. Generally, higher asset turnover is considered better for the company. Asset turnover is measured by dividing net sales by average total assets.
The total asset turnover for the most recent two years, for company S.
2.
To determine
Concept Introduction:
Asset turnover: The ratio that measures efficiency in the utilization of assets in generating sales revenue for the company is referred to as asset turnover. Generally, higher asset turnover is considered better for the company. Asset turnover is measured by dividing net sales by average total assets.
Whether the change in asset turnover is favorable or unfavorable when the prior year and current year are compared.
3.
To determine
Concept Introduction:
Asset turnover: The ratio that measures efficiency in the utilization of assets in generating sales revenue for the company is referred to as asset turnover. Generally, higher asset turnover is considered better for the company. Asset turnover is measured by dividing net sales by average total assets.
The comparison of Company S’s asset turnover with companies A and G.
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Students have asked these similar questions
Calculate the Asset Turnover for Potbelly Corp, 2015. Use highlighted excel info
Formula: Sales / Average Total Assets
Comparative figures for Apple and Google follow.
Apple
One Year
Current Year Prior
$338,516 $ 365,725
260,174
265,595
$ millions
Total assets
Net sales
Complete this question by entering your answers in the tabs below.
Apple
Google
Required:
1. Compute total asset turnover for the most recent two years for Apple and Google using the data shown.
2. In the current year, which company is more efficient in generating net sales given total assets?
3. Does asset turnover underperform or outperform the 0.5 industry asset turnover for (a) Apple and (b) Google?
Total Asset Turnover
Two Years
Prior
$375,319
229, 234
Current Year
Required 1 Required 2 Required 3
Compute total asset turnover for the most recent two years for Apple and Google using the data shown.
Note: Round your answers to 2 decimal places.
0.61 times
times
Current Year
$ 275,909
161,857
One Year Prior
times
times
Required 1
Google
One Year
Prior
$ 232,792
136,819
Two Years
Prior
$ 197,295
110,855
Required 2 >
What is the comparison of TOTAL ASSET TURNOVER between Alex Company and the industry Average? Which one is better in terms of performance?
Industry Average (Total Asset Turnover)
2015: 0.70
2016: 0.68
2017: 0.46
2018: 1.36
2019: 1.42
Alex company (Total Asset Turnover)
2015: 0.15
2016: 0.14
2017: 0.20
2018: 0.14
2019: 0.22
Chapter 8 Solutions
FINANCIAL+MANAG.ACCT.
Ch. 8 - Prob. 1QSCh. 8 - Prob. 2QSCh. 8 - Prob. 3QSCh. 8 - Prob. 4QSCh. 8 - Prob. 5QSCh. 8 - Prob. 6QSCh. 8 - Prob. 7QSCh. 8 - Prob. 8QSCh. 8 - Prob. 9QSCh. 8 - Prob. 10QS
Ch. 8 - Prob. 11QSCh. 8 - Prob. 12QSCh. 8 - Prob. 13QSCh. 8 - Prob. 14QSCh. 8 - Prob. 15QSCh. 8 - Prob. 16QSCh. 8 - Prob. 17QSCh. 8 - Prob. 18QSCh. 8 - Prob. 19QSCh. 8 - Prob. 20QSCh. 8 - Prob. 21QSCh. 8 - Prob. 22QSCh. 8 - Prob. 1ECh. 8 - Prob. 2ECh. 8 - Prob. 3ECh. 8 - Prob. 4ECh. 8 - Prob. 5ECh. 8 - Prob. 6ECh. 8 - Prob. 7ECh. 8 - Prob. 8ECh. 8 - Prob. 9ECh. 8 - Prob. 10ECh. 8 - Prob. 11ECh. 8 - Prob. 12ECh. 8 - Prob. 13ECh. 8 - Prob. 14ECh. 8 - Prob. 15ECh. 8 - Prob. 16ECh. 8 - Prob. 17ECh. 8 - Prob. 18ECh. 8 - Prob. 19ECh. 8 - Prob. 20ECh. 8 - Prob. 21ECh. 8 - Prob. 22ECh. 8 - Prob. 23ECh. 8 - Prob. 24ECh. 8 - Prob. 25ECh. 8 - Prob. 26ECh. 8 - Prob. 1PSACh. 8 - Prob. 2PSACh. 8 - Prob. 3PSACh. 8 - Prob. 4PSACh. 8 - Prob. 5PSACh. 8 - Prob. 6PSACh. 8 - Prob. 7PSACh. 8 - Prob. 1PSBCh. 8 - Prob. 2PSBCh. 8 - Prob. 3PSBCh. 8 - Prob. 4PSBCh. 8 - Prob. 5PSBCh. 8 - Prob. 6PSBCh. 8 - Prob. 7PSBCh. 8 - Prob. 8SPCh. 8 - Prob. 1.1AACh. 8 - Prob. 1.2AACh. 8 - Prob. 1.3AACh. 8 - Prob. 1.4AACh. 8 - Prob. 2.1AACh. 8 - Prob. 2.2AACh. 8 - Prob. 2.3AACh. 8 - Prob. 3.1AACh. 8 - Prob. 3.2AACh. 8 - Prob. 3.3AACh. 8 - Prob. 1DQCh. 8 - Prob. 2DQCh. 8 - Prob. 3DQCh. 8 - Prob. 4DQCh. 8 - Prob. 5DQCh. 8 - Prob. 6DQCh. 8 - Prob. 7DQCh. 8 - Prob. 8DQCh. 8 - Prob. 9DQCh. 8 - Prob. 10DQCh. 8 - Prob. 11DQCh. 8 - Prob. 12DQCh. 8 - Prob. 13DQCh. 8 - Prob. 14DQCh. 8 - Prob. 15DQCh. 8 - Prob. 16DQCh. 8 - Prob. 1BTNCh. 8 - Prob. 2BTNCh. 8 - Prob. 3BTNCh. 8 - Prob. 4BTN
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