Dee's Has a Fixed Asset Turnover Rate of 1

question 48

Multiple Choice

Dee's has a fixed asset turnover rate of 1.12 and a total asset turnover rate of 0.91.Sam's has a fixed asset turnover rate of 1.15 and a total asset turnover rate of 0.88.Both companies have similar operations.Based on this information,Dee'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 $1.12 in net fixed assets
• D)generating $1.12 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:

Reaction Mechanism

The step-by-step sequence of elementary reactions by which overall chemical change occurs.

Free-radical Polymerization

A method of polymerization that involves the polymer growth through the successive addition of free-radical building blocks.

BuLi

Short for Butyllithium, an organolithium reagent commonly used in organic synthesis to deprotonate acidic compounds and perform nucleophilic additions.

PhOH

The abbreviation for phenol, representing a hydroxyl group (-OH) bonded to a benzene ring.