Multiple Choice
RJ's has a fixed asset turnover rate of 1.26 and a total asset turnover rate of .97. Sam's has a fixed asset turnover rate of 1.31 and a total asset turnover rate of .94. Both companies have similar operations. Based on this information, RJ's must be doing which one of the following?
A) Utilizing its fixed assets more efficiently than Sam's
B) Utilizing its total assets more efficiently than Sam's
C) Generating $1 in sales for every $1.26 in net fixed assets
D) Generating $1.26 in net income for every $1 in net fixed assets
E) Maintaining the same level of current assets as Sam's
Correct Answer:

Verified
Correct Answer:
Verified
Q1: Ratios that measure a firm's liquidity are
Q2: The Tech Store has annual sales of
Q4: A firm has total assets with a
Q5: An increase in which of the following
Q6: Which one of these identifies the relationship
Q7: Mortgage lenders probably have the most interest
Q8: Which one of these is the least
Q9: Corner Supply has a current accounts receivable
Q10: The DuPont identity can be used to
Q11: Taylor's Men's Wear has a debt-equity ratio