1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
DochEvi [55]
2 years ago
7

Roak Company and Clay Company are similar firms that operate in the same industry. Clay began operations 2 years ago and Roak st

arted 5 years ago. In the current year, both companies pay 7% interest on their debt to creditors. The following additional information is available. Roak Company Clay Company Current Yr 1 Yr Ago 2 Yrs Ago Current Yr 1 Yr Ago 2 Yrs Ago Total asset turnover 4.6 4.3 4.5 3.0 3.0 2.6 Return on total assets 9.0% 12.6% 13.2% 5.9% 5.6% 5.3% Profit margin ratio 3.9% 4.0% 3.8% 5.8% 6.0% 5.9% Sales $485,000 $455,000 $471,000 $285,000 $245,000 $185,000 1. (a) Which company has the better profit margin
Business
1 answer:
babunello [35]2 years ago
8 0

Answer: Clay Company

Explanation:

Based on the information given, the current, previous year and two previous years beforehand profit margins of Clay company are greater than the corresponding profit margins of Roak company.

This means that Clay company has a better profit margin and shows that they retain a higher percentage of their revenue after costs are taken out as opposed to Roak company.

You might be interested in
Which statement best describes the effects of low and high interest rates on the economy? Low interest rates encourage consumers
kirill115 [55]

The correct answer is A. Low interest rate encourage consumers to borrow and spend, while high interest rates encourage saving.

Interest rate is termed as the rate which a bank charges to its borrowers.

Nationally a good interest rat for a loan is 3.7%.

Recession and inflation are some effects of interest rate. We get to hear the federal funds rates if the interest rate falls or rises.

If the interest rate becomes high people will start to spend less to avoid the high cost.

6 0
3 years ago
Read 2 more answers
Prepare a bank reconciliation as of October 31 from the following information:
kakasveta [241]

Answer:

              Bank Reconciliation Statement as of October 31

Particulars                       Amount    Particulars                     Amount

Balance as per bank          $350      Balance as per books    $806

Add: Late deposit               $433      Less: Returned checks   $80

Less: Outstanding check    $66       Less: Error recordings    $9

          ($24+$42)                                           ($65-$56)

Reconciled Balance           $717        Reconciled Balance       $717

3 0
3 years ago
What is a Benefit of using good human relations
nadezda [96]

Answer:

One of the benefits of using good human relations is that it will help you with your social skills and you will adjust better to different situations.

Explanation:

You can be good at social situations.

4 0
2 years ago
A business’s total revenue for a specified period is $500,000, its operating expenses are $50,000, and its net profit if $150,00
creativ13 [48]

Answer:

your answer is 300,000

8 0
3 years ago
Halka Company is a no-growth firm. Its sales fluctuate seasonally, causing total assets to vary from $345,000 to $410,000, but f
mihalych1998 [28]

Answer:

$345,000

Explanation:

Since Halka Company uses a maturity matching approach, it must match its short term working capital with its short term debts, and its long term working capital with its long term debts. Halka's assets should be compensated with a corresponding debt instrument of similar maturity.

Since Halka's assets vary form $345,000 to $410,000, its long term debt plus equity should match at least $345,000.

3 0
3 years ago
Other questions:
  • 24. You have saved $4,000 for a down payment on a new car. The largest monthly payment you can afford is $350. The loan will hav
    6·1 answer
  • Sales made on account normally lead to cash receipts. true or false.
    6·1 answer
  • An example of a difficult work decision would be: a. Deciding to finish a task before taking a break b. Deciding to fill the pap
    5·1 answer
  • Imagine that you are the marketing manager of a hotel chain that wants to implement a customer reward and loyalty program. You r
    5·1 answer
  • Geraldine Parker, the owner of Gi Grs Dance Studio, Inc., started the business by investing $10,000 cash and donating a building
    10·1 answer
  • A car dealership promotes cars by donating a percentage of each sale to local charities. A beverage company gives free branded t
    5·1 answer
  • g announced that it plans to cut its dividend from $2.50 to $1.50 per share (next year) and use the extra funds to expand its op
    12·1 answer
  • Which is NOT a reason companies integrate horizontally?
    13·1 answer
  • An institutional review board (IRB) helps to ensure the safety of subjects of review. Who typically sits on such a board?
    5·1 answer
  • Which of these
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!