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It depends on how you drive! Stop and go or open road, mostly? I get up to 27 mpg on my 2002 V6. But sometimes it drops to 23 - 24 if traffic is really bad during that tankfull. (Its always bad here just a matter of degree.)
Have you ever changed your plugs? Do you have rear drum brakes and if so, are they dragging? Do you carry dumbbells or bowling balls in your car all the time, or maybe a big fat guy as a passenger to make the car heavier?
also check the basic health of your engine - i'd start with a compression check. Its worn some, but 120k really isnt a lot of mileage on a toyota engine that has had its oil changed. If compression is too low, that is your problem. (too bad you couldnt have done the compression check before you bought the car - probably worth $10 or 20 from harbor freight to buy your own compression tester for this.)
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