Question

In: Finance

The total asset turnover should generally be higher in value than the fixed-asset turnover. A. True...

The total asset turnover should generally be higher in value than the fixed-asset turnover.

A. True

B. False

Solutions

Expert Solution

False.

The statement is wrong. Fixed asset turnover is generally higher than the total asset turnover.

Total asset turnover = Net sales / Total assets

Fixed asset turnover = Net sales / Fixed assets

The fixed asset is always less than the total assets. Thus, the total asset turnover should be less than the fixed-asset turnover.

jeff jeffy answered 1 year ago
Next > < Previous

Related Solutions

Discuss when total asset turnover would be more important than fixed asset turnover. Provide an example.
Discuss when total asset turnover would be more important than fixed asset turnover. Provide an example.
Discuss when total asset turnover would be more important than fixed asset turnover. Provide an example.
Discuss when total asset turnover would be more important than fixed asset turnover. Provide an example.
Total asset turnover 1.5 times Average collection period​ (assume 365-day​ year) 15 days Fixed asset turnover...
Total asset turnover 1.5 times Average collection period​ (assume 365-day​ year) 15 days Fixed asset turnover 5 times Inventory turnover​ (based on cost of goods​ sold) 3 times Current ratio 2.0 times Sales​ (all on​ credit) ​$4,000,000 Cost of goods sold 75% of sales Debt ratio 40% Fill in the assets section of the pro forma balance sheet.  ​(Round all items to the nearest​ dollar.) Cash ​$ Accounts receivable Inventories Net fixed assets Total assets ​$ Fill in the liabilities...
The market value: Multiple Choice of accounts receivable is generally higher than the book value of...
The market value: Multiple Choice of accounts receivable is generally higher than the book value of those receivables. of an asset tends to provide a better guide to the actual worth of that asset than does the book value. of fixed assets will always exceed the book value of those assets. of an asset is reflected in the balance sheet. of an asset is lowered each year by the amount of depreciation expensed for that asset.
What is a firm's total asset turnover
What is a firm's total asset turnover, If its fixed assets are 120,000 current assets are 30,000 current liabilities are 44,000 sales were 200,000 and net income was 75,000.
Which of the following is a market value ratio ? Total asset turnover ratio Quick Ratio...
Which of the following is a market value ratio ? Total asset turnover ratio Quick Ratio Price-Earnigs ( P/E ) ratio   Return on Equity (ROE
higher receivable turnover than payable turnover what does this say about a company
higher receivable turnover than payable turnover what does this say about a company
A fixed asset turnover ratio of 0.72 means that: A. For every $1 in net fixed...
A fixed asset turnover ratio of 0.72 means that: A. For every $1 in net fixed assets, a firm can generate $0.72 in net income. B. For every $1 in net fixed assets, a firm can generate $0.72 in sales. C. For every $1 in total assets, a firm can generate $0.72 in net income. D. For every $1 in net fixed assets, a firm can borrow $0.72. E. For every $1 in total assets, a firm can generate $0.72...
Should the F value be higher in a Capm model than a FF3 model?
Should the F value be higher in a Capm model than a FF3 model?
Total cholesterol content in HDL is higher than that of LDL. Group of answer choices True...
Total cholesterol content in HDL is higher than that of LDL. Group of answer choices True False Flag this Question Question 581 pts LDL uptake in cells is mediated by receptors. Group of answer choices True False Flag this Question Question 591 pts Both even- and odd-carbon chain fatty acids are catabolized by beta-oxidation. Group of answer choices True False Flag this Question Question 601 pts Carnitine is a carrier for fatty acid for transportation from the cytosol to the...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT