Question

cercise 7-36 g Fixed Assets orted the following information for 2018 and 2019: 2018 $550,000 ty, plant, and equipment, cost ulated depreciation 170,000 2019 $ 550,000 220,000 4,600,000 50,000 les ciation expense red: ute Pitt's fixed asset turnover ratio and the average age of its fixed assets. Enter your answers to two decimal pla asset turnover X times age age of fixed assets years Feedback

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Answer 1

Average fixed assets = [($550,000-$170,00)+($550,000-$220,000)/2 Average fixed assets = ($380,000 + $330,000)/2 Average fixed assets = $710,000/2 Average fixed assets = $355,000 Fixed asset turnover = Sales/Average fixed assets Fixed asset turnover = $4,600,000/$355,000 Fixed asset turnover = 12.96 times Average age of fixed assets = Accumulated depreciation/Depreciation expense Average age of fixed assets = $220,000/$50,000 Average age of fixed assets = 4.4 years