Financial Statement Data for the Years Ended December 31 for Parker

question 155

Essay

Financial Statement data for the years ended December 31 for Parker Corporation is as follows:
2012 2011
Net Sales $2,595,600 $2,409,498
Fixed Assets:
Beginning of the year $ 901,070 $820,000
End of the year 829,330 901,070
a) Determine the Fixed Asset Turnover for 2012 and 2011.
b) Does the change in Fixed Asset Turnover from 2011 to 2012 indicate a favorable or unfavorable trend.?

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Definitions:

Adler

Refers to Alfred Adler, an Austrian medical doctor and psychotherapist, known for founding the school of individual psychology which emphasizes the importance of feelings of inferiority and the creative self.

Overcompensate

To make up for deficiencies in one area by excelling or exaggerating in another.

Adler

Alfred Adler was an Austrian medical doctor, psychotherapist, and founder of the school of individual psychology, known for his concepts of inferiority complex and striving for superiority.

Sickly Child

A term that describes a child who experiences chronic illness or poor health over an extended period.