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The financial statements of Black Barn Company are given below. Black Barn Company...

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Accounting

The financial statements of Black Barn Company are given below.
Black Barn Company Income Statement (2009)
Sales $ 8,000,000
Cost of goods sold 5,260,000
Gross profit 2,740,000
Selling & administrative expenses 1,500,000
Operating profit 1,240,000
Interest expense 140,000
Income before tax 1,100,000
Tax expense 440,000
Net income $ 660,000
Balance Sheet 20092008
Cash $ 200,000 $ 50,000
Accounts receivable 1,200,000950,000
Inventory 1,840,0001,500,000
Total current assets $ 3,240,000 $ 2,500,000
Fixed assets 3,200,0003,000,000
Total assets $ 6,440,000 $ 5,500,000
Accounts Payable $ 800,000 $ 720,000
Bank loan 600,000100,000
Total current liabilities $ 1,400,000 $ 820,000
Bond payable 900,0001,000,000
Total liabilities $ 2,300,000 $ 1,820,000
Common stock (130,000 shares) $ 300,000 $ 300,000
Retained earnings 3,840,0003,380,000
Total liabilities & equity $ 6,440,000 $ 5,500,000
Note: The common shares are trading in the stock market for $40 each.
Refer to the financial statements of Black Barn Company. The firm's fixed asset turnover ratio for 2009 is:
Multiple Choice
1.58.
2.58.
None of the options are correct.
2.04.
2.97.

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