Executive Jets, LLC operates a charter flight-service company in the northwestern United States. Classic Steps, LLC is a company that provides dance lessons to students of all ages. Classic Steps has dance studios in several cities throughout the western United States. The following data are from the companies’ most recent financial statements but are not identified as to which company they relate.

Required
a. Calculate the ratio of sales to property, plant, and equipment for each company.
b. Based on the ratios calculated in Requirement a, decide which is the charter flight-service company and which is the dance studio business. Explain your answer.
c. Based on the ratios calculated in Requirement a, which company appears to be using its property, plant, and equipment more efficiently? Explain your answer.
d. Explain why two companies with such different amounts of property, plant, and equipment might have the same amount of current assets.

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Company 1 Company 2 Sales Depreciation expense Net earnings Current assets Property, plant, and equipment Total assets $10,000,000 $10,000,000 70,000 800,000 850,000 950,000 6,000,000 2,500,000 7,900,000