A fiXed Asset Turnover Ratio of

Multiple Choice

A fixed asset turnover ratio of .72 means that:

A) For every $1 in total assets, a firm can generate $0.72 in net income.
B) For every $1 in net fixed assets, a firm can generate $0.72 in net income.
C) For every $1 in total assets, a firm can generate $0.72 in sales.
D) For every $1 in net fixed assets, a firm can generate $0.72 in sales.
E) For every $1 in net fixed assets, a firm can obtain $0.72 in debt.