If a company's asset turnover ratio decreased from Year 1 to Year 2,which of the following conclusions can be made?
A) The company was more efficient in using its assets to produce profits in Year 2.
B) The company produced less in sales for each dollar invested in assets in Year 2.
C) The company was less profitable in Year 1.
D) The company overinvested in assets in Year 2.
Correct Answer:
Verified
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