Flathead Lake Manufacturing Comparative Balance Sheets 2012 2011 Cash 50,000 $ 40,000 Accounts Receivable 570,000 600,000 Inventory 530,000 460,000 Total Current Assets $1,150,000 $1,100,000 Fixed Assets 2,050,000 1,400,000 Total Assets $3,200,000 $2,500,000 Accounts Payable Bank Loans Total Current Liabilities Long-term Bonds Total Liabilities Common Stock (200,000 shares) Retained Earnings Total Equity Total Liabilities and Equity $ 320,000 480,000 $ 800,000 1,500,000 $ 2,300,000 200,000 700,000 $ 900,000 $3,200,000 $ 300,000 400,000 $ 700,000 1,000,000 $1,700,000 200,000 600,000 $ 800,000 $2,500,000 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 03.14 O 3.02 O 3.26 0 3.56 The financial statements of Flathead Lake Manufacturing Company are shown below: Flathead Lake Manufacturing Income Statement 2012 Sales $9,300,000 Cost of Goods Sold 5,750,000 Depreciation Expense 550,000 Gross Profit $ 3,000,000 Selling and Administrative Expenses 2,200,000 EBIT $ 800,000 Interest Expense 200,000 Income before Tax $ 600,000 Taxes 375,000 Net Income $ 225,000