During 2016,Ambiance Company Reported Net Revenue of $3,600,000

question 79

Essay

During 2016,Ambiance Company reported net revenue of $3,600,000.The company reported net fixed assets of $710,000 on January 1,2016 and net fixed assets of $890,000 on December 31,2016.
Required:
Part a.Calculate the fixed asset turnover ratio.
Part b.Assume the 2016 fixed asset turnover ratio was lower than the 2015 ratio.Explain how an analyst might interpret this change.
Part c.Describe at least one circumstance that might have caused the fixed asset turnover ratio to decline and be consistent with bad news.
Part d.Describe at least one circumstance that might have caused the fixed asset turnover ratio to decline and yet be consistent with good news.

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Definitions:

Path-goal Theory

A leadership theory that suggests leaders should adjust their leadership style according to the situation to help followers achieve their goals and navigate obstacles.

Directive Behaviors

Leadership actions that involve giving explicit instructions and directions to followers, typically focusing on task accomplishment.

Goal Accomplishment

The successful achievement or completion of specific objectives or targets.

Directive Leadership

Involves setting clear objectives, providing specific directions, and expecting compliance from team members.