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Dew Drop Inn had net revenue of $117,000 in 2020 and $100,000 in 2021. Its fixed assets were $400,000 at the end of 2019, $380,000 at the end of 2020, and $360,000 at the end of 2021. In which year was the fixed asset turnover ratio better

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Based on the fixed assets and the revenue in the years in question, the year with the better fixed asset turnover ratio was 2020.

The fixed asset turnover ratio is calculated as:

= Revenue / Fixed assets

For 2020 it was:

= 117,000 / 380,000

= 47%

In 2021 it was:

= 100,000 / 360,000

= 28%

The year with the higher ratio is the better year and that year was 2020.

Find out more at https://brainly.com/question/6955012.

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