Financial statement data for the year ending December 31 for Navajo Company follow: Sales $2,550,000 Net income 1,258,000 Fixed assets (net): Beginning of year 800,000 End of year 985,000 The fixed asset turnover ratio for Navajo Company on December 31 would be 2.9. 2.6. 1.4. None of these choices are correct.

Fixed Asset Turnover Ratio=2.9 Times

Explanation:

Calculation for the fixed asset turnover ratio for Navajo Company on December 31

The first step is to find the Average fixed asset

Using this formula

Average fixed assets=Beginning of year fixed assets + End of year Fixed assets/2

Let plug in the formula

Average Fixed assets =800,000+985,000/2

Average Fixed assets =$1,785,000/2

Average Fixed assets=$892,500

The next step is to calculate for the Fixed asset turnover ratio

Using this formula

Fixed asset turnover ratio=Sales/Average

Let plug in the formula

Fixed Asset Turnover Ratio=$2,550,000/$892,500

Fixed Asset Turnover Ratio=2.9 Times

Therefore fixed asset turnover ratio for Navajo Company on December 31 will be 2.9 Times

in 2001, dell computer became the world’s largest personal computer vendor, continuing to

gain market share and post profits in an industry struggling with slumping sales and billions of

dollars in losses. dell sells 90% of its pcs directly to the final customer, largely bypassing the

reseller channel that accounts for most of the world’s pc sales. this direct customer relationship

is the key to dell’s business model, and provides distinct advantages over the indirect sales

model. dell’s direct relationship with the customer allows it to tailor its offerings to customer

needs, offer add-on products and services, and use the internet to offer a variety of customer

services. in addition, dell’s pcs are built to customers’ specifications upon receipt of an order,

giving dell additional advantages over indirect pc vendors who must try to forecast demand and

ship products based on those forecasts. dell’s direct sales and build-to-order model has achieved

superior performance in the pc industry in terms of inventory turnover, reduced overhead, cash

conversion, and return on investment (kraemer, et al., 2000).

explanation: