Bob's Toys has a fixed asset turnover rate of 1.2 and a total asset turnover rate of.84. Gerold's Toys has a fixed asset turnover rate of 1.1 and a total asset turnover rate of.96. Both companies have similar operations. Bob's Toys:
A) Is using its fixed assets more efficiently than Gerold's Toys.
B) Is using its total assets more efficiently than Gerold's Toys.
C) Is generating $1 in sales for every $1.20 in net fixed assets.
D) Is generating $1.20 in net income for every $1 in net fixed assets.
E) Has $.84 in total assets for every $.96 Gerold's has in total assets.
Correct Answer:
Verified
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