Leaf, Inc of Kingston Has a fiXed Asset Turnover Rate of of 2.26

question 319

Multiple Choice

Leaf, Inc. of Kingston has a fixed asset turnover rate of 2.26 and a total asset turnover rate of 1.13. From this information, you know that the:

• A) Fixed assets equal 226 percent of the annual sales amount.
• B) Annual sales are less than the value of the total assets of the firm.
• C) Value of the current assets is equal to the value of the fixed assets.
• D) Firm has $2.13 in sales for every $1 in total assets.
• E) Firm utilizes its assets more efficiently than a firm with a total asset turnover of 1.25.

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Definitions:

Peripheral Vasodilatation

The expansion of blood vessels in the outer parts of the body, which can increase blood flow and decrease blood pressure.

Cardiac Output

The volume of blood the heart pumps through the circulatory system in one minute, an important measure of heart function.