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LaPorta Company and Lott Corporation, two corporations of roughly the same size, are both involved in...

LaPorta Company and Lott Corporation, two corporations of roughly the same size, are both involved in the manufacture of in-line skates. Each company depreciates its plant assets using the straight-line approach. An investigation of their financial statements reveals the following information. LaPorta Co. Lott Corp. Net income $800,000 $1,000,000 Sales revenue 1,300,000 1,180,000 Average total assets 2,500,000 2,000,000 Average plant assets 1,800,000 1,000,000 (a) For each company, calculate the asset turnover. (Round answers to 2 decimal places, e.g. 0.60.) LaPorta Co. Lott Corp. Asset turnover times times (b) Based on your calculations in part (a), comment on the relative effectiveness of the two companies in using their assets to generate sales and produce net income. (Round answer to 2 decimal places, e.g. 52.75%.) Based on asset turnover, is more effective in using assets to generate sales. It's asset turnover is % higher than . LINK TO TEXT

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