Question
Dee's has a fixed asset turnover rate of 1.12 and a total asset turnover rate of 0.91. Sam's has a fixed asset turnover rate of
Dee's has a fixed asset turnover rate of 1.12 and a total asset turnover rate of 0.91. Sam's 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, Dee's must be doing which one of the following?
Question 18 options:
maintaining the same level of current assets as Sam's
utilizing its fixed assets more efficiently than Sam's
generating $1.12 in net income for every $1 in net fixed assets
generating $1 in sales for every $1.12 in net fixed assets
utilizing its total assets more efficiently than Sam's
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