The following is available for Company X and Company Y for 2 years: Company X...
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The following is available for Company X and Company Y for 2 years: Company X Company Y Year 1 Year 2 Year 1 Year 2 Net sales $1,200,000 $1,350,000 $2,300,000 $2,500,000| revenue Cost of Goods sold 680,000 720,000 1,500,000 1,560,000 Average net 102,000 ixed assets 110,000 135,000 155,000 Required: A. Calculate the fixed asset turnover ratio for both companies for each year. Round your answers to two decimals. (6 Marks). B. Which company had the more favorable ratio each year? (3 Marks). C. Which company has the most favorable trend in fixed asset turnover during this 2-year period? (3 Marks).
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