Current ratio and fixed assets turnover ratio


Zimmerman changes from a prepaid expense for instruments to an expense as part of selling, general and administrative expense. Instruments become long-lived assets and cost included in plant, property & equipment. Drpreciation over a 5 yr period and the change was meant to increase reported earnings by 26.8 million. How did this change effect the basic accounting method and the computation of the current ratio and fixed assets turnover ratio.

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Accounting Basics: Current ratio and fixed assets turnover ratio
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