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The financial statements of Burnaby Mountain Trading Company are shown below. Burnaby Mountain Trading Company Comparative Balance Sheets 2020 2019 Cash $ 90,000 $ 80,000

The financial statements of Burnaby Mountain Trading Company are shown below.

Burnaby Mountain Trading Company Comparative Balance Sheets
2020 2019
Cash $ 90,000 $ 80,000
Accounts Receivable 810,000 800,000
Inventory 800,000 720,000
Total Current Assets $ 1,700,000 $ 1,600,000
Fixed Assets 2,600,000 2,400,000
Total Assets $ 4,300,000 $ 4,000,000
Accounts Payable $ 500,000 $ 400,000
Bank Loans 100,000 100,000
Total Current Liabilities $ 600,000 $ 500,000
Long-term Bonds 400,000 300,000
Total Liabilities $ 1,000,000 $ 800,000
Common Stock (200,000 shares) 500,000 500,000
Retainded Earnings 2,800,000 2,700,000
Total Equity $ 3,300,000 $ 3,200,000
Total Liabilities and Equity $ 4,300,000 $ 4,000,000

Note: The common shares are trading in the stock market for $27 each. Refer to the financial statements of Burnaby Mountain Trading Company. The firm's fixed-asset turnover ratio for 2020 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 of the year must be averaged.)

Multiple Choice

  • 9.57

  • 6.05

  • 11.11

  • 2.80

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