$\quad$ $\quad$ $\quad$

$\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\text { Flathead Lake Manufacturing }$
$\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\text { Income Statement } 2012$
$\begin{array}{l}\begin{array}{lll} \text { Sales}\\ \text { Cost of Goods Sold}\\ \text { Depreciation Expense}\\ \text { Gross Profit}\\ \text { Selling and Administrative Expenses}\\ \text { EBIT}\\ \text { Interest Expense}\\ \text { Income before Tax}\\ \text { Taxes}\\ \text { Net Income}\\\end{array}\begin{array}{lll}\$ 9,300,000 \\5,750,000 \\\underline{550,000} \\ \$ 3,000,000\\\underline{2,200,000}\\ \$ 800,000\\\underline{ 200,000} \\ \$ 600,000\\\underline{375,000 }\\\underline{ \$ 225,000} \\\end{array}\end{array}$
$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\text { Flathead Lake Manufacturing }$
$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\text { Comparative Balance Sheets }$
$\begin{array}{l}\begin{array}{lll}\\ \text {Cash}\\ \text {Accounts Receivable}\\ \text {Inventory}\\ \text {Total Current Assets}\\ \text {Fixed Assets}\\ \text {Total Assets}\\\\ \text {Accounts Payable}\\ \text {Bank Loans}\\ \text {Total Current Liabilities}\\ \text {Long-term Bonds}\\ \text {Total Liabilities}\\ \text {Common Stock (200,000 shares) }\\ \text {Retained Earnings}\\ \text {Total Equity}\\ \text {Total Liabilities and Equity}\\\end{array}\begin{array}{rr}2012 & 2011 \\\$ 50,000 & \$ 40,000 \\570,000 & 600,000 \\\hline 530,000 & 460,000\\ \$ 1,150,000 & \$ 1,100,000 \\2,050,000 & 1,400,000 \\\hline \$ 3,200,000 & \$ 2,500,000 \\\hline\\\$ 320,000 & \$ 300,000 \\480,000 & 400,000 \\\hline \$ 800,000 & \$700,000 \\1,500,000 & 1,000,000\\\hline \$ 2,300,000 & \$ 1,700,000 \\200,000 & 200,000 \\700,000 & 600,000\\\hline 900,000 & \$ 800,000 \\\hline \$ 3,200,000 & \$ 2,500,000 \\\hline\end{array}\end{array}$

Note: The common shares are trading in the stock market for $15 per share
-Refer to the financial statements of Flathead Lake Manufacturing Company.The firm's total asset turnover for 2012 is _________.(Please keep in mind that when a ratio involves both income statement and balance sheet numbers,the balance sheet numbers for the beginning and end of the year must be averaged. )

A) 3.56
B) 3.26
C) 3.14
D) 3.02

Correct Answer:

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Access For Free