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You are calculating the asset turnover ratios for two major fast-food chains, McDonald's Corporation and Starbucks Corporation, for the fiscal year 2023. Requirements: McDonald's reported

You are calculating the asset turnover ratios for two major fast-food chains, McDonald's Corporation and Starbucks Corporation, for the fiscal year 2023.

Requirements:

  1. McDonald's reported net sales revenue of $40 billion and average total assets of $20 billion for the fiscal year 2023. Starbucks reported net sales revenue of $20 billion and average total assets of $10 billion during the same period.
  2. Calculate the asset turnover ratio for both McDonald's and Starbucks.
  3. Compare the asset turnover ratios of McDonald's and Starbucks and discuss their efficiency in utilizing assets to generate sales.

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