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:

Mammary Glands

Specialized organs in female mammals that produce milk for feeding their young.

Arrector Pili

Small muscles attached to hair follicles that contract to cause hair to stand on end, known as "goosebumps."

Intermediate

Positioned or occurring between two extremes, levels, or points; can also refer to someone or something that is not fully advanced in a skill, process, or knowledge.

Vellus

Fine, light-colored, and barely noticeable hair that covers the majority of the body, different from terminal hair.