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3 years ago

The denominator in the fixed asset turnover ratio is

1 answer:

4 0

The denominator of the fixed asset turnover ratio is AVERAGE FIXED ASSET.
The fixed assert turnover ratio refers to the ratio of sales to the value of fixed asset of a company. The ratio is very important in evaluating how a company is using its fixed assets to generate sales.
Mathematically, fixed asset turnover ratio = Net sales / Average fixed assets.
The numerator is net sales while the denominator is average fixed asset.

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Whitepunk [10]

Answer:

b 5:3

Explanation:

Jungle gym sales unit : tree sales unit

10,000 : 6,000

10,000 / 6000

= 5/3

=5:3

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3 years ago

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eBook Problem Walk-Through Byron Books Inc. recently reported $12 million of net income. Its EBIT was $28.6 million, and its tax

snow_lady [41]

Answer:

Earnings Before Tax (EBT) = $16,000,000

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Interest expense = $12,600,000

Income Statement

Details Amount

EBIT $28,600,000

Less: Interest expenses <u>$12,600,000</u>

EBT $16,000,000

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3 years ago

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Answer: "structural unemployment".
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3 years ago

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Accrued Vacation Pay A business provides its employees with varying amounts of vacation per year, depending on the length of emp

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Answer:

On Jan 31

Vacation pay expense Dr $8,900

To vacation payable $8,900

(Being the vacation expense is recorded)

Explanation:

The journal entry is as follows

On Jan 31

Vacation pay expense Dr $8,900

To vacation payable $8,900

(Being the vacation expense is recorded)

The computation is shown below:

= Estimated amount of the current year's vacation pay ÷ total number of months in a year

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= $8,900

For recording this transaction we debited the vacation expense as it increased the expenses while at the same time it also increased the liabilities so the vacation payable is credited

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