Analyze how well Parts Unlimited manages its assets:

$($a$)$ Calculate the fixed asset turnover ratio for the year, using the total amount of property, plant, and equipment $($net of accumulated

deprecation$).$ If the industry average fixed asset turnover is $0\mathrm{.}75,$ is the company more or less efficient at generating sales with its fixed

assets than other companies in the same industry? $($Hint: For the amount of fixed assets, use the net amount of all tangible long$-$term

assets.$)$

The fixed asset turnover ratio is:

The company is more efficient at generating sales with its fixed assets.

$($b$)$ Suppose the equipment purchased on April $1,2024,$ had been depreciated using the units of production method. At the time of

purchase, expected output was $20,000$ units, and actual production for $2024$ was $2,000$ units. Calculate the amount of depreciation

expense that would have been recorded and determine the difference in net income and total assets for $2024($ignoring tax effects$).$

Units$-$of$-$production depreciation:

Depreciation expense under units$-$of$-$production method is higher. $($True or False$)$

Income and total assets in $2024$ would have been

$($c$)$ The transaction on June $30,2024,$ shows the company purchased a patent for $$40,000$ from a third$-$party marketing company.

Suppose the company instead spent $$40,000$ to internally develop the new packaging technology, which it then patented. Calculate the

difference in net income and total assets for $2024($ignoring tax effects$).$

Additional expense for $2024$

The income and total assets in $2024$ would have been higher. $($True or False$)$