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Previous NextOptions v Use the following information to answer this question. Bayside, Inc. 2010 Income Statement ($ in thousands et sales ess: Cost of goods sold $6,270 4,790 Less: Depreciation arnings before interest and taxes ess: Interest paid axable Income ess: Taxes Net income 1,06 S 1,01 $ 658 35 Bayside, Inc. 2009 and 2010 Balance Sheets ($ in thousands) 2009 2010 2009 2010 Cash Accounts rec nventory $ 16 5 $ 270Accounts payable 1,210 1.88 1,810 $ 1,910 1050 ng-term debt 2,170 Common stock 3,260 3,490 Retained earni 92 $3,460 3,390 otal Net fixed assets Total assets 3 920 3,770 Total liab. & How many dollars of sales are being generated from every dollar of fixed assets? (use 2010 value $1.60 $1.66 $0.86 $1.63 $0.87

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Answer #1

Dollars of sales being generated=Net Sales/Net fixed assets

=(6270/3770)

which is equal to

=$1.66(Approx).

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