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
antiseptic1488 [7]
3 years ago
13

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 9% interest on their debt to creditors. The following additional information is available.
Roak Company Clay Company
Current Yr 1 Yr ago 2 Yr ago Current Yr 1 Yr ago 2 Yr ago
Total asset turnover 4.8 4.5 4.7 3.2 3.8 2.8
Return on total assets 11% 13% 13.6% 7.9% 7.6% 7.3%
Profit margin ratio 4.1% 4.2% 4.0% 6.2% 6.4% 6.3%
Sales $495,000 $465,000 $481,000 $295,000 $255,000 $195,000

Required:
1. (a) Which company has the better profit margin? (b) Which has the better asset turnover? (c) Which has thebetter return on assets?
2. Which company has the better rate Of growth in sales?
3. (a) Did Roak successfully use financial leverage in the current year? (b) Did Clay?
Business
1 answer:
Paladinen [302]3 years ago
4 0

Answer:

<h3>Required:</h3>

1. (a) Which company has the better profit margin? (b) Which has the better asset turnover? (c) Which has thebetter return on assets?

2. Which company has the better rate Of growth in sales?

3. (a) Did Roak successfully use financial leverage in the current year? (b) Did Clay?

You might be interested in
The following information was used in reconciling the bank account for Minerva Company on October 31: Balance per bank, October
Strike441 [17]

Answer: A $37.280.

Explanation:

Adjusted book balance will include those transactions made or charged by the bank for/to the company so will include;

= Balance per books - Insufficient funds check - Utility bill paid by bank  - Check printing charge

= 40,000 - 1,400 - 1,240 - 80

= $37,280

3 0
3 years ago
Which term describes the seller's ability and desire to sell goods and services.A. supply
Fittoniya [83]
Out of the following choices given, the term that describes the seller's ability and desire to seel good and services is called demand. The answer will be B.
7 0
3 years ago
Read 2 more answers
the role of the develpoed nation in helping the developing nations for sustainable develpoment of natural resources???pls help.
tigry1 [53]

Answer:

Developed nations have an economic and moral responsability to help developing contries achieve sustainable development goals not only because developed nations have more money, but also because they are the main originators of climate change.

For this reason, developed nations should give funds to developing nations in order to fund projects such as solar, wind, geothermal, and nuclear power plants, and they should also provide technical assistance, since the population of developed nations tends to be more educated than that of developing nations.

7 0
2 years ago
Recently, the cable television networks have bombarded viewers with a variety of shows based around teams that come in to redeco
allochka39001 [22]

Answer:

social integration. i hope this helps for you!

Explanation:

7 0
3 years ago
Suppose the local slaughterhouse gives off an unpleasant stench. the price of meat would then be _______ because not all of the
Ivanshal [37]

Suppose the local slaughterhouse gives off an unpleasant stench. the price of meat would then be too low because not all of the costs are accounted for in the marketplace.

When the price of an item increases, buyers tend to purchase less of that item due to both the substitution effect and the income effect. When the pizza was on sale at the student council he was selling for $2, Mo didn't buy any. When the price dropped to $1.75 he bought one for Moe's daily lunch.

An increase in demand and a decrease in supply raises the slaughterhouse price, but the effect on the equilibrium quantity cannot be determined. 1. For each quantity, consumers should place a higher value on the goods and producers should set a higher price to supply the goods. Therefore, the price is higher.

Learn more about the slaughterhouse at

brainly.com/question/9354360

#SPJ4

7 0
2 years ago
Other questions:
  • A graduate student wants to examine the effect of print media versus televised media on individuals' position on several social
    15·1 answer
  • Cady files an employment discrimination suit against Durable Goods Corporation under the Civil Rights Act. If Cady shows that Du
    13·1 answer
  • A company’s flexible budget for 16,000 units of production showed sales, $48,000; variable costs, $24,000; and fixed costs, $17,
    15·1 answer
  • Strategic management focuses on integrating management, marketing, finance and accounting, production and operations, research a
    7·1 answer
  • All of the transactions of Harding Trading Co. for the year have been journalized and posted. The following information has been
    11·1 answer
  • ​Mcleod, Inc. incurred fixed costs of $ 400 comma 000. Total​ costs, both fixed and​ variable, are $ 450 comma 000 when 59 comma
    7·1 answer
  • During her speech on malpractice insurance, the head of the local branch of the American Medical Association consistently avoide
    12·1 answer
  • WHAT ARE MANAGED SERVICE OPERATIONS?​
    13·2 answers
  • The ponderosa bank receives a new deposit of $2,500. the reserves requirement is 20 percent. How much can this bank loan out as
    13·1 answer
  • Bank reserves include Part 2 A. vault cash and deposits with the Federal Reserve. B. loans to bank customers and deposits with t
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!