Response to the following problem:
Comparative figures for Research In Motion and Apple follow.
Research In Motion Apple
One Two One Two
Current Year Years Current Year Years
($ millions) Year Prior Prior Year Prior Prior
Total assets . . . . . . . . . $10,204 $ 8,101 $5,511 $47,501 $36,171 $25,347
Net sales . . . . . . . . . . . . . . 14,953 11,065 6,009 42,905 37,491 24,578
Required
1. Compute total asset turnover for the most recent two years for Research In Motion and Apple using the data shown.
2. Which company is more efficient in generating net sales given the total assets it employs? Assume an industry average of 1.0 for asset turnover.