Tabor Industries is a technology company that operates in a highly competitive environment. In 2008, management had significantly curtailed its capital expenditures due to cash flow problems.
Tabor reported the following information for 2011:
€¢ Net fixed assets (beginning of year), $489,000
€¢ Net fixed assets (end of year), $505,000
€¢ Net sales, $1,025,000
€¢ Accumulated depreciation (end of year), $543,000
€¢ Depreciation expense, $126,000
An analyst reviewing Tabor€™s financial history noted that Tabor had previously reported fixed asset turnover ratios and average age of its assets as follows:

During this time frame, the industry average fixed asset turnover ratio is 2.46 and the industry average age of assets is 1.79 years.

Required:
1. Compute Tabor€™s fixed asset turnover ratio for 2011.
2. Compute the average age of Tabor€™s fixed assets for 2011.
3. Conceptual Connection: Comment on Tabor€™s fixed asset turnover ratios and the average age of the fixed assets.

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2006 2007 2008 2009 2010 2.48 2.45 2.7 2.57 2.33 Average age of assets (years) .8 .79 94 2.8 374 Fixed asset turnover