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Firm A Assets Current assets Fixed assets Total assets 4 10 14 Firm B Assets Current assets Fixed assets Total assets 7 7 14 12
Firm A Assets Current assets Fixed assets Total assets 4 10 14 Firm B Assets Current assets Fixed assets Total assets 7 7 14 12 Firm A Total sales Cost of sales Gross Profit Firm B Total sales Cost of sales Gross Profit 12 -7 Above are portions of the balance sheet and income statement for two companies in 2008. Based upon this information, which of the following statements is most likely to be true? O A. Asset turnover ratios indicate that firm A is generating greater revenue per dollar of assets than firm B. O B. Both asset turnover ratios and fixed asset turnover ratios indicate that firm A is generating greater revenue per dollar of assets than firm B. O C. Fixed asset turnover ratios indicate that firm A generating more sales for the assets they employ than firm B. OD. Fixed asset turnover ratios indicate that firm A generating fewer sales for the assets they employ than firm B
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