Examlex
During 2018,Ambiance Company reported net revenue of $3,600,000.The company reported net fixed assets of $710,000 on January 1,2018 and net fixed assets of $890,000 on December 31,2018.
Required:
Part a.Calculate the fixed asset turnover ratio.
Part b.Assume the 2018 fixed asset turnover ratio was lower than the 2017 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.
Bonds Payable
Long-term liabilities on a company's balance sheet, representing money owed to bondholders that must be repaid at a future date.
Cash Flows
The total amount of money being transferred into and out of a business, especially affecting liquidity.
Reporting Cash Activities
A process that involves documenting all cash transactions of a company over a specific period.
Q1: Using its aging of accounts receivable,Age Old,Inc.estimates
Q5: Samberg Inc.had the following transactions.<br>Oct.1 - Sold
Q51: Martinez,Inc.acquired a patent on January 1,2017 for
Q57: Current liabilities<br>A)Liquid assets divided by current liabilities.<br>B)A
Q111: Goods in transit are:<br>A)inventory items being transported
Q116: Bolster Soda had an accounts receivable turnover
Q152: The records of Alberta Inc.included the
Q190: The weighted average cost method uses the
Q215: The amount of uncollectible accounts at the
Q268: A company purchased a computer system on