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]
3 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]3 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
A production possibilities frontier with a bowed-outward shape indicates a. increasing opportunity costs as more and more of one
Arada [10]

Answer:

a. increasing opportunity costs as more and more of one good is produced

Explanation:

A production possibility frontier is a curve that shows the two combinations of goods an economy can produce given that its resocurces are fully employed.

The production possibility curves is bowed outwards because of increasing opportunity costs as more and more of one good is produced.

If more of one good is to be produced, more of the second good would be given up to increase the production of the first good.

The attached image is the graph of a production possibility frontier. At point A, the maximum amount of good X is produced with zero quantity of good Y. To increase production of good Y and move to point B, some quantities of good X would be given up. To further increase the production of good Y and move to point C, even more quantities of good X would be given up.

I hope my answer helps you

3 0
3 years ago
Explain the opportunity cost of working on a farm. ​
Liula [17]

Answer:

Opportunity cost is a useful concept when considering alternative places for using your resources and assets. ... If he/she farms the land, the opportunity cost is the income foregone by not renting it to a neighbor.

8 0
2 years ago
The Aztec civilization also had a school for a few select young women to become priestesses where they learned to weave and deco
Vladimir [108]

Answer:

True

Explanation:

The women become priestesses in a school, where they learned to weave an decorate costumes.

3 0
3 years ago
Cartels control the production and pricing of goods mainly through
Lubov Fominskaja [6]

Answer:

the elimination of competition

Explanation:

8 0
3 years ago
Describe the difference between multitasking and combining tasks.
Alika [10]
Multitasking means doing two task at the same time without disturbing any of the two task.
Combining tasking means doing the task by combining means like...both of them are processing one after one for a little bit of time...
5 0
3 years ago
Read 2 more answers
Other questions:
  • Concrete Consulting Co. has the following accounts in its ledger: Cash; Accounts Receivable; Supplies; Office Equipment; Account
    8·1 answer
  • A manager with _______ skills has the ability to deal effectively with people inside and outside the organization.
    11·2 answers
  • Uchimura Corporation has two divisions: the AFE Division and the GBI Division. The corporation's net operating income is $12,300
    14·1 answer
  • A company receives equipment from two factories: 38% from factory A, and all other equipment from factory B. Each factory has a
    9·1 answer
  • The projected benefit obligation was $460 million at the beginning of the year. Service cost for the year was $25 million. At th
    12·1 answer
  • X minus Industries manufactures 3minusD printers. For each​ unit, $ 3 comma 500 of direct material is used and there is $ 2 comm
    14·1 answer
  • Does each Subway $5 Footlong cost the franchisee more than $5? Subway, the fast food restaurant franchise, recently announced it
    13·1 answer
  • When preparing a statement of cash flows, a decrease in accounts receivable during a period would cause which one of the followi
    10·1 answer
  • Help hep help help help
    9·1 answer
  • Bob and mary are financing $180,500 for a new home. their lender will approve an interest rate of 5% if bob and mary pay two dis
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!