Handy Corner Stores reported the following asset values in 2002 and 2003:
|
2003 |
2002 |
|
|
Cash |
$30,000 |
$20,000 |
|
Accounts receivable |
400,000 |
300,000 |
|
Inventory |
600,000 |
350,000 |
|
Land |
200,000 |
150,000 |
|
Buildings |
600,000 |
500,000 |
|
Equipment. |
300,000 |
200,000 |
In addition, Handy Corner had sales of $2,000,000 in 2003. Cost of goods sold for the year was $1,500,000. Compute Handy Corner s fixed asset turnover ratio for 2003.