Auer Corporation and Marte Corporation, two corporations of roughly the same size, are both involved in the manufacture of canoes and sea kayaks. Each company depreciates its plant assets using the straight-line approach. An investigation of their financial statements reveals the following information.

Instructions
(a) For each company, calculate the asset turnover.
(b) Based on your calculations in part (a), comment on the relative effectiveness of the two companies in using their assets to generate sales and produce netincome.

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Auer Corp Net income Sales revenue Average total assets Average plant assets 300,000 1,050,000 1,000,000 750,000 Marte Corp. 325,000 945,000 1,050,000 770,000