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Other Fields Homework Help Finance Topic started by: avinash0312 on Jul 7, 2019



Title: Firm A: Firm B:Assets AssetsCurrent assets 4Current assets 7Fixed assets 10Fixed assets 7Total ...
Post by: avinash0312 on Jul 7, 2019
Firm A: Firm B:
Assets Assets
Current assets 4Current assets 7
Fixed assets 10Fixed assets 7
Total assets 14Total assets 14
Firm A:Firm B:
      Total sales12Total sales12
      Cost of sales-5Cost of sales-7
Gross Profit7Gross Profit5

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?

▸ Asset turnover ratios indicate that firm A is generating greater revenue per dollar of assets than firm 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.

▸ Fixed asset turnover ratios indicate that firm A generating more sales for the assets they employ than firm B.

▸ Fixed asset turnover ratios indicate that firm A generating fewer sales for the assets they employ than firm B.


Title: Firm A: Firm B:Assets AssetsCurrent assets 4Current assets 7Fixed assets 10Fixed assets 7Total ...
Post by: DryPhantom on Jul 7, 2019
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Title: Firm A: Firm B:Assets AssetsCurrent assets 4Current assets 7Fixed assets 10Fixed assets 7Total ...
Post by: avinash0312 on Jul 7, 2019
Thanks