Firm A: Firm B:

Assets Assets

Current assets 4 Current assets 7

Fixed assets 10 Fixed assets 7

Total assets 14 Total assets 14

Firm A: Firm B:

Total sales 12 Total sales 12

Cost of sales -5 Cost of sales -7

Gross Profit 7 Gross Profit 5

Above are portions of the balance sheet and income statement for two companies in 2008. Based upon this information, which of the following statements is most likely to be true?

		A) Asset turnover ratios indicate that firm A is generating greater revenue per dollar of assets than firm B.
		C) Both asset turnover ratios and fixed asset turnover ratios indicate that firm A is generating greater revenue per dollar of assets than firm B.
		D) Fixed asset turnover ratios indicate that firm A is generating more sales for the assets it employs than firm B.
		B) Fixed asset turnover ratios indicate that firm A is generating fewer sales for the assets it employs than firm B.