Chapter 3
Long-Term Assets
113
d) Record the journal entry for the impairment loss, if any.
Date
Account Title and Explanation
Debit
Credit
AP-23A (
7
)
The following financial data is given for two companies, TIX and SUBA. They are both in the
business of selling fresh produce to large supermarkets across North America. Both companies
have a year-end of December 31.
TIX Company
December 31, 2015 December 31, 2014
Net Sales
$2,500,000
$2,250,000
Total Assets
$4,700,000
$4,200,000
Net Income
$310,000
$300,000
Gross Profit
$1,000,000
$900,000
SUBA Company
December 31, 2015 December 31, 2014
Net Sales
$1,900,000
$2,200,000
Total Assets
$1,500,000
$1,800,000
Net Income
$400,000
$421,000
Gross Profit
$855,000
$990,000
Required
Based on the information provided, answer the following questions. Round your answers to two
decimal places.
a) Calculate the asset turnover of each company for 2015.
