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E9-14 Computing and Interpreting the Fixed Asset Turnover Ratio from a Financial Analysts Perspective [LO 9-7] The following data were included in a recent Papaya Inc. annual report (in millions): 2013 2014 2015 2016 Net revenue $ 82,225 $ 120,119 $ 163,500 $ 167,910 Net property, plant, and equipment 4,960 9,380 15,620 17,000 Required: Compute Papaya's fixed asset turnover ratio for 2014, 2015, and 2016. (Do not round intermediate calculations. Round your answers to 1 decimal place.)

Respuesta :

TomShelby

Answer:

2014 Fixed Assets TO:  11.47

2015 Fixed Assets TO: 13.08

2106 Fixed Assets TO: 10.29

Explanation:

Fixed turnover ratio:

[tex]\frac{Profit}{Avg FA} = $FA Turnover[/tex]

​where:

[tex]$Average FA =(Beginning FA + Ending FA)/2[/tex]

2014 DATA

Profit:  120,119

Beginning 4960

Ending 9380

Average 7170

[tex]\frac{120,119}{7170} = $FA Turnover[/tex]

Inventory TO 16.75299861

2015 data

Profit:  163,500

Beginning 9380

Ending 15,620

[tex]\frac{163,500}{12,500} = $FA Turnover[/tex]

FA TO 13.08

2016

Profit:         167,910

Beginning 15,620

Ending         17,000

[tex]\frac{167,910}{16,310} = $Inventory Turnover[/tex]

Inventory TO 10.2949111

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