Relevant financial information for Gordon, Inc. and Jordan, Inc. for the current year is provided below. ($ in millions) Gordon, Inc. Jordan, Inc.
Net sales $3,280 $6,540
Net income 118 132
Total assets, beginning 1,420 2,230
Total assets, ending 1,600 2,020
Based on these data, which of the following is a correct conclusion?
a) Asset Turnover is 0.5 times for Gordon and 0.3 times for Jordan. Thus, Gordon generates more sales per dollar of assets than does Jordan.
b) Asset Turnover is 0.5 times for Gordon and 0.3 times for Jordan. Thus, Jordan generates more sales per dollar of assets than does Gordon.
c) Asset Turnover is 2.2 times for Gordon and 3.1 times for Jordan. Thus, Gordon generates more sales per dollar of assets than does Jordan.
d) Asset Turnover is 2.2 times for Gordon and 3.1 times for Jordan. Thus, Jordan generates more sales per dollar of assets than does Gordon.