Bradbury Corp. reported the following asset values in 2011 and 2012: In addition, Bradbury had sales of $3,000,000 in 2012. Cost of goods sold for the year was $1,800,000. As of the end of 2011, the fair value of Bradbury’s total assets was $1,750,000. Of the excess of fair value over book value, $125,000 resulted because the fair value of Bradbury’s inventory was greater than its recorded book value. As of the end of 2012, the fair value of Bradbury’s total assets was $2,500,000. As of December 31, 2012, the fair value of Bradbury’s inventory was $200,000 greater than the inventory’s recorded book value. Required: 1. Compute Bradbury’s fixed asset turnover ratio for 2012. 2. Using the fair value of fixed assets instead of the book value of fixed assets, recompute Bradbury’s fixed asset turnover ratio for 2012. State any assumptions that you make. 3. Interpretive Question: Bradbury’s primary competitor is Everyman Inc. Everyman’s fixed asset turnover ratio for 2012, based on publicly available information, is 2.92 times. Is Bradbury more or less efficient at using its fixed assets than Everyman? Explain youranswer.

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