Financial Statement Data for the Years Ended December 31 for Parker

question 38

Essay

Financial statement data for the years ended December 31 for Parker Corporation are as follows:
Current Year
Prior Year
Sales
Fixed assets net): Beginning of the year
$2,595,600
$901,070
$2,409,498
$820,000
End of the year
829,330
901,070
a) Determine the fixed asset turnover for the current and prior years.
b) Does the change in fixed asset turnover from the prior year to the current year indicate a favorable or unfavorable trend?

---

Definitions:

Binding Price Floor

A government-imposed price control or limit that sets a minimum price for a good or service, above the equilibrium price, causing a surplus in the market.

Quantity Supplied

The amount of a good or service that producers are willing to sell at a given price over a certain period of time.

Quantity Demanded

The overall volume of a good or service that customers are ready and financially able to acquire at a certain price point.

Price Floor

A government-imposed minimum price charged for a commodity, intended to ensure fair conditions for producers.