A Level Accounting (9706)•9706/12/M/J/21
Explanation
Non-current asset turnover requires average non-current assets, but opening balance for 2020 is ambiguous
Steps:
- Non-current asset turnover = net revenue / average non-current assets; net revenue unchanged at value giving 2019 ratio of 3.96 with denominator $100.
- 2019 average non-current assets = $100 (assuming the given denominator, despite inconsistent division).
- Opening non-current assets 2020 = closing 2019, but 2019 average $100 does not specify opening/closing split without 2019 purchases/depreciation.
- Closing non-current assets 2020 = opening 2020 + 1,000 depreciation; average 2020 = (opening + closing)/2, but cannot compute without exact opening 2020.
- Discount increase irrelevant as net revenue unchanged and does not affect non-current assets.
Not enough information.
Final answer: Not enough information.
Topic: Analysis and communication of accounting information
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