Financial Statement Data for the Years Ended December 31 for Parker

Financial statement data for the years ended December 31 for Parker Corporation are as follows:
Current Year
Prior Year
Sales
Fixed assets net): Beginning of the year
$2,595,600
$901,070
$2,409,498
$820,000
End of the year
829,330
901,070
a) Determine the fixed asset turnover for the current and prior years.
b) Does the change in fixed asset turnover from the prior year to the current year indicate a favorable or unfavorable trend?

Correct Answer:

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The increase in fixed assets...

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