Question

The following data were included in a recent Papaya Inc. annual report (in millions):

		2013			2014				2015				2016
Net revenue	$	66,225			$	109,249			$	158,500			$	155,910
Net property, plant, and equipment		4,800				7,780				15,460				13,400

Required:

Compute Papaya's fixed asset turnover ratio for 2014, 2015, and 2016. (Do not round intermediate calculations. Round your answers to 1 decimal place.)

Answer 1

	Fixed asset Turnover
	Numerator	/	denominator	=	Fixed asset Turnover
	Net sales	/	Average Fixed assets	=	Fixed asset Turnover
2014	$ 109,249.00	/	$      6,290.00	=	17.37	times
2015	$ 158,500.00	/	$    11,620.00	=	13.64	times
2016	$ 155,910.00		$    14,430.00		10.80	times

Fixed assets in 2013	$         4,800.00
Fixed assets in 2014	$         7,780.00
Fixed assets in 2015	$       15,460.00
Fixed assets in 2016	$       13,400.00

Average assets in
2014	2015	2016
$ 6,290.00	$ 11,620.00	$   14,430.00