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Firm A: Assets Firm B: Current assets Fixed assets Total assets 4 10 14 Current assets Fixed assets Total assets 7 Firm B 12 5
Firm A: Assets Firm B: Current assets Fixed assets Total assets 4 10 14 Current assets Fixed assets Total assets 7 Firm B 12 5 Total sales Total sales 12 Cost of sales ost of sales Gross Profit Gross Profit 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. Fixed asset turnover ratios indicate that firm A generating fewer sales for the assets they employ than firm B O B. Asset turnover ratios indicate that firm A is generating greater revenue per dollar of assets than firm B C. 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 D. Fixed asset turnover ratios indicate that firm A generating more sales for the assets they employ than firm B
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