Answer:
1.56
Explanation:
Data provided in the question:
Net fixed assets (beginning of year) = $1,860,000
Net fixed assets (end of year) = $2,280,000
Net operating revenues for the year = $3,230,000
Net income for the year = $1,600,000
Now,
company's fixed asset turnover ratio for the year
= Net operating revenues ÷ Average total assets
Also,
Average total assets
= [Net fixed assets (beginning of year) + Net fixed assets (end of year) ] ÷ 2
= [ $1,860,000 + $2,280,000 ] ÷ 2
= $2,070,000
Therefore,
Company's fixed asset turnover ratio for the year
= $3,230,000 ÷ $2,070,000
= 1.56
