Fixed Asset Turnover Ratio Waston Company reported the following asset values in 2021 and 2022 : In addition, Waston had net sales of $1,982,500 in 2022. Cost of goods sold for the year was $1,250,000. As of the end of 2021, the fair value of Waston's total assets was $1,250,000. Of the excess of fair value over carrying amount, $25,000 resulted because the fair value of Waston's inventory was greater than its recorded carrying amount. As of the end of 2022 , the fair value of assets was $1,750,000. As of December 31,2022 , the fair value of Waston's inventory was $40,000 greater than the inventory's recorded book value. 1. Compute Waston's fixed asset turnover ratio for 2022. Round your answer to two decimal places. times 2. Using the fair value of fixed assets instead of the carrying amount of fixed assets, recompute Waston's fixed asset turnover ratio for 2022 . Round /our answer to two decimal places. times Waston's primary competitor is Handy Corner. Handy Corner's fixed asset turnover ratio for 2022, based on publicly available information, is 2.8 imes. Is Waston's more or less efficient at using its fixed assets than Handy Corner? t is to tell whether Waston is more or less efficient than Handy Corner at using its fixed assets. The difference in their fixed asset urnover ratios may be because of a difference between book value and fair value of reported non-current assets. If Handy Corner has fixed assets, their book value would be their fair value. Then Waston's fixed asset turnover ratio, based on air values, is than the ratio value for Handy Corner. Fixed Asset Turnover Ratio Waston Company reported the following asset values in 2021 and 2022 : In addition, Waston had net sales of $1,982,500 in 2022. Cost of goods sold for the year was $1,250,000. As of the end of 2021, the fair value of Waston's total assets was $1,250,000. Of the excess of fair value over carrying amount, $25,000 resulted because the fair value of Waston's inventory was greater than its recorded carrying amount. As of the end of 2022 , the fair value of assets was $1,750,000. As of December 31,2022 , the fair value of Waston's inventory was $40,000 greater than the inventory's recorded book value. 1. Compute Waston's fixed asset turnover ratio for 2022. Round your answer to two decimal places. times 2. Using the fair value of fixed assets instead of the carrying amount of fixed assets, recompute Waston's fixed asset turnover ratio for 2022 . Round /our answer to two decimal places. times Waston's primary competitor is Handy Corner. Handy Corner's fixed asset turnover ratio for 2022, based on publicly available information, is 2.8 imes. Is Waston's more or less efficient at using its fixed assets than Handy Corner? t is to tell whether Waston is more or less efficient than Handy Corner at using its fixed assets. The difference in their fixed asset urnover ratios may be because of a difference between book value and fair value of reported non-current assets. If Handy Corner has fixed assets, their book value would be their fair value. Then Waston's fixed asset turnover ratio, based on air values, is than the ratio value for Handy Corner