John's company has a fixed asset turnover rate of 1.12 and a total asset turnover rate of 0.91. Sam's company has a fixed asset turnover rate of 1.15 and a total asset turnover rate of 0.88. Both companies have similar operations. Based on this information, John's company must be doing which one of the following? Select one: O a. utilizing its total assets more efficiently than Sam's O b. maintaining the same level of current assets as Sam's O c. generating $1 in sales for every $1.12 in net fixed assets O d. utilizing its fixed assets more efficiently than Sam's O e. generating $1.12 in net income for every $1 in net fixed assets

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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John's company has a fixed asset turnover rate of 1.12 and a total asset turnover rate of 0.91.
Sam's company has a fixed asset turnover rate of 1.15 and a total asset turnover rate of 0.88.
Both companies have similar operations.
Based on this information, John's company must be doing which one of the following?
Select one:
O a. utilizing its total assets more efficiently than Sam's
O b. maintaining the same level of current assets as Sam's
O c. generating $1 in sales for every $1.12 in net fixed assets
O d. utilizing its fixed assets more efficiently than Sam's
O e. generating $1.12 in net income for every $1 in net fixed assets
Transcribed Image Text:John's company has a fixed asset turnover rate of 1.12 and a total asset turnover rate of 0.91. Sam's company has a fixed asset turnover rate of 1.15 and a total asset turnover rate of 0.88. Both companies have similar operations. Based on this information, John's company must be doing which one of the following? Select one: O a. utilizing its total assets more efficiently than Sam's O b. maintaining the same level of current assets as Sam's O c. generating $1 in sales for every $1.12 in net fixed assets O d. utilizing its fixed assets more efficiently than Sam's O e. generating $1.12 in net income for every $1 in net fixed assets
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