During 2014,Company X Sells 500,000 Units for $8 Each

question 111

Essay

During 2014,Company X sells 500,000 units for $8 each.Sales discounts are $100,000 and sales returns and allowances are $300,000.The company reported a total of $710,000 in fixed assets on January 1,2014 and $890,000 in fixed assets on December 31,2014.
a.Calculate net sales revenue.
b.Calculate average fixed assets.
c.Calculate the fixed asset turnover ratio.
d.Assume the 2014 fixed asset turnover ratio was lower than the 2013 ratio.Describe one circumstance where this change would indicate bad news and one circumstance where this change would be consistent with good news.

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Definitions:

Pearl Harbor

A U.S. naval base in Hawaii that was the site of a surprise military strike by the Japanese Navy against the United States on December 7, 1941, leading directly to the U.S. entering World War II.

Indian Nationalists

Individuals advocating for the independence of India from British rule, part of a movement that gained significant momentum in the early 20th century and led to India's independence in 1947.

World War II

A global conflict that lasted from 1939 to 1945, involving most of the world's nations, including all of the great powers, organized into two opposing military alliances: the Allies and the Axis.

Battle at Midway

A significant naval battle in World War II (June 1942) where the United States defeated Japan, marking a turning point in the Pacific Theater.