Projected fixed asset turnover ratio


Problem:

ABC projects sales to total $20,755,000 this year. ABC started the year with $13,583,000 of net fixed assets, plans to buy $4,760,000 of new fixed assets and plans to claim $4,730,000 of depreciation expenses during the year.

Required:

Question: Given these numbers, what is ABC's projected fixed asset turnover ratio as of the end of the year?

Note: Explain all steps comprehensively.

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Accounting Basics: Projected fixed asset turnover ratio
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