RJ's Has a Fixed Asset Turnover Rate of 1

question 3

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

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Definitions:

First-degree Felony

A classification of crime regarded as the most serious, carrying the harshest penalties, such as life imprisonment or death penalty in certain jurisdictions.

Imprisonment

The act of confining someone in a prison as a form of criminal punishment.

Punishable

Describes an action or behavior subject to penalties or legal sanctions.

Second-degree Felony

A category of offense that is less severe than a first-degree felony but more severe than a third-degree felony, often involving significant harm or risk but with factors that mitigate the offender's culpability.