Financial Statement Data for the Years Ended December 31 for Parker

question 23

Essay

Financial statement data for the years ended December 31 for Parker Corporation are as follows:
$\begin{array}{lrr} & \text { Current Year } & \text { Prior Year } \\\text { Sales } & \$ 2,595,600 & \$ 2,409,498 \\\text { Fixed assets net: } & & \\\text { Beginning of the year } & \$ 901,070 & \$ 820,000 \\\text { End of the year } & 829,330 & 901,070\end{array}$

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?

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Definitions:

Mental Representation

An internal cognitive symbol that represents external reality or abstract thought, enabling thinking and reasoning in the absence of direct sensory input.

Eraser

An eraser is a tool used for removing pencil and sometimes ink markings from paper or other surfaces.

Deceive Others

Intentionally causing someone to believe something that is not true, typically for personal gain or advantage.

Age 2

Refers to the developmental stage of human life approximately two years after birth, often marked by rapid physical and cognitive growth.