The company has net sales revenue of $4.2 million during 2018. The company's records also included the following information: Assets 12/31/17 12/31/18 Property, plant and equipment $ 2.6 million $ 3.1 million Licensing agreements $ 0.8 million $ 0.7 million Goodwill $ 0.6 million $ 0.6 million Investments $ 0.7 million $ 0.8 million What is the company's fixed asset turnover ratio for 2018

1.474

Explanation:

Fixed Assets Turnover ratio               =Net Sales/Average Fixed Assets

Fixed Assets opening 2.6

Fixed Assets closing  3.1

Total fixed assets     5.7/2=2.85

by putting values in above formula we get=4.2/2.85=1.474

In fixed assets we only account for property plant and equipment.where as the good will and licensing agreements are intangible assets

The fixed assets turnover is for 2018 is 1.47

Explanation:

Fixed asset turnover=net sales/average fixed assets

net sales is $4.2 million

average fixed assets=opening fixed assets+closing fixed assets/2

opening fixed assets is $2.6 million

closing fixed assets is $3.1 million

average fixed assets=$2.6 million+$3.1 million/2

                                   =$2.85  million

fixed assets turnover=$4.2 million/$2.85 million

                                   =1.47