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Firm A: ssets Firm B: Assets Current assets Fixed assets Total assets 4 Current assets Fixed assets Total assets 14 14 irm Firm B: Total
Firm A: ssets Firm B: Assets Current assets Fixed assets Total assets 4 Current assets Fixed assets Total assets 14 14 irm Firm B: Total sales 12 Total sales 12 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? 0 A. Fixed asset turnover rtios indicate that firm A generating fewer sales for the assets they employ than firm B 0 B. Fixed asset turnover ratios indicate that firm A generating more sales for the assets they employ 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 0 D. Asset turnover ratios indicate that firm A is generating greater revenue per dollar of assets than firm B
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