Bradbury Corp. reported the following asset values in 2011 and 2012:

In addition, Bradbury had sales of $3,000,000 in 2012. Cost of goods sold for the year was $1,800,000. As of the end of 2011, the fair value of Bradbury€™s total assets was $1,750,000. Of the excess of fair value over book value, $125,000 resulted because the fair value of Bradbury€™s inventory was greater than its recorded book value. As of the end of 2012, the fair value of Bradbury€™s total assets was $2,500,000. As of December 31, 2012, the fair value of Bradbury€™s inventory was $200,000 greater than the inventory€™s recorded book value.
Required:
1. Compute Bradbury€™s fixed asset turnover ratio for 2012.
2. Using the fair value of fixed assets instead of the book value of fixed assets, recompute Bradbury€™s fixed asset turnover ratio for 2012. State any assumptions that you make.
3. Interpretive Question: Bradbury€™s primary competitor is Everyman Inc. Everyman€™s fixed asset turnover ratio for 2012, based on publicly available information, is 2.92 times. Is Bradbury more or less efficient at using its fixed assets than Everyman? Explain youranswer.

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2012 2011 Cash Accounts receivable *aaa Inventory. Land. Buildings. Equipment S 30,000 25,000 400,000 250,000 450,000 300,000 200,000 150,000 500,000 400,000 300,000 200,000