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Bob's Toys Has a fiXed Asset Turnover Rate of 1

Question 368

Multiple Choice

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.

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