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Swifty Company and Blue Spruce Corporation, two corporations of roughly the same size, are both involved in the manufacture of in-line skates. Each company depreciates
Swifty Company and Blue Spruce Corporation, two corporations of roughly the same size, are both involved in the manufacture of in-line skates. Each company depreciates its plant assets using the straight-line approach. An investigation of their financial statements reveals the following information Net Income Sales revenue Average total assets Average plant assets Swifty Co. $760,000 1.242.500 2,380,000 1,830,000 Blue Spruce Corp $1,010,000 1.271,500 2,020,000 1,030,000 (a) For each company calculate the asset turnover (Round answers to 2 decimal places ag 0.60) Swifty Co. Blue Spruce Corp Asset turnover times
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