At year-end 2002, Yung.com had notes payable of $1200, accounts payable of $2400, and long-term debt of $6000. Corresponding entries for 2003 are $1600, $2000, and $5000. Asset values are below. During 2003, Yung.com had sales of $2000, cost of goods sold of $400, depreciation of $100, and interest paid of $150. The (average) tax rate is 21% and all taxes are paid currently. Current Asset 2002 2003 Cash $400 $1000 Marketable securities 400 300 Accounts receivable 900 800 Inventory 1800 2000 Fixed Assets Net Fixed Asset (Plant&Equipment) $6000 $2000 In 2003, the Total Asset Turnover ratio is ______________ (Keep the sign and two decimal numbers.)

The Total Asset Turnover (TAT) ratio is calculated as:

\[
\text{Total Asset Turnover} = \frac{\text{Sales}}{\text{Average Total Assets}}
\]

Where:
- **Sales** for 2003 is given as \$2000.
- **Average Total Assets** is the average of total assets at the end of 2002 and 2003.

### Step 1: Calculate Total Assets for 2002 and 2003

**Total Assets for 2002**:
\[
\text{Total Assets 2002} = \text{Cash} + \text{Marketable Securities} + \text{Accounts Receivable} + \text{Inventory} + \text{Net Fixed Assets}
\]
\[
\text{Total Assets 2002} = 400 + 400 + 900 + 1800 + 6000 = 9500
\]

**Total Assets for 2003**:
\[
\text{Total Assets 2003} = \text{Cash} + \text{Marketable Securities} + \text{Accounts Receivable} + \text{Inventory} + \text{Net Fixed Assets}
\]
\[
\text{Total Assets 2003} = 1000 + 300 + 800 + 2000 + 2000 = 6100
\]

### Step 2: Calculate the Average Total Assets
\[
\text{Average Total Assets} = \frac{\text{Total Assets 2002} + \text{Total Assets 2003}}{2}
\]
\[
\text{Average Total Assets} = \frac{9500 + 6100}{2} = \frac{15600}{2} = 7800
\]

### Step 3: Calculate Total Asset Turnover Ratio
\[
\text{Total Asset Turnover} = \frac{2000}{7800} = 0.26
\]

### Final Answer:
\[
\boxed{0.26}
\]

Would you like more details or have any questions?

Here are some related questions:
1. What other ratios can be calculated using Total Assets?
2. How does depreciation affect Total Assets in the calculation?
3. Why is Total Asset Turnover important for a business?
4. What are the implications of a low Total Asset Turnover ratio?
5. How would an increase in accounts receivable affect the Total Asset Turnover ratio?

**Tip:** The Total Asset Turnover ratio measures how efficiently a company uses its assets to generate sales. Higher values indicate better efficiency.

Learn how to calculate the Total Asset Turnover ratio for Yung.com in 2003, using sales and average total assets. This solution provides step-by-step calculations, covering key financial concepts like asset turnover and average total assets. Ideal for college-level finance students.

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