The Balance Sheets of Davidson Corporation Reported Net Fixed Assets

question 42

Multiple Choice

The balance sheets of Davidson Corporation reported net fixed assets of $320,000 at the end of 2009. The fixed-asset turnover ratio for 2009 was 4.0 and sales for the year totaled $1,480,000. Net fixed assets at the end of 2008 were:

• A)$470,000.
• B)$370,000.
• C)$420,000.
• D)None of these.$1,480,000 Average fixed assets = 4.0 Average fixed assets = $370,000, therefore net fixed assets at the end of 2008 must be $420,000 [($320,000 + x) 2] = $370,000; $320,000 + x = $740,000; x = $420,000

---

Definitions:

Cognitive Therapy

A form of psychotherapy that emphasizes the important role of thinking in how we feel and what we do, aiming at changing negative patterns of thought.

Subcortical Regions

Areas of the brain located below the cerebral cortex, involved in various functions such as emotion, reward, and memory.

Autonomic Nervous System

The part of the nervous system that controls involuntary actions, such as the heartbeat and digestion.

Sympathetic Nervous System

Part of the autonomic nervous system that prepares the body for physical activity by increasing heart rate, dilating pupils, and other physiological responses.