Leaf, Inc. of Kingston has a ﬁxed asset turnover rate of 2.26 and a total asset turnover rate of 1.13. From this information, you know that the:
A) Fixed assets equal 226 percent of the annual sales amount.
B) Annual sales are less than the value of the total assets of the ﬁrm.
C) Value of the current assets is equal to the value of the ﬁxed assets.
D) Firm has $2.13 in sales for every $1 in total assets.
E) Firm utilizes its assets more eﬃciently than a ﬁrm with a total asset turnover of 1.25.

Question

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The Answer of Leaf, Inc. of Kingston has a ﬁxed asset turnover rate of 2.26 and a total asset turnover rate of 1.13. From this information, you know that the:
A) Fixed assets equal 226 percent of the annual sales amount.
B) Annual sales are less than the value of the total assets of the ﬁrm.
C) Value of the current assets is equal to the value of the ﬁxed assets.
D) Firm has $2.13 in sales for every $1 in total assets.
E) Firm utilizes its assets more eﬃciently than a ﬁrm with a total asset turnover of 1.25.

Leaf, Inc of Kingston Has a ﬁXed Asset Turnover Rate of of 2.26