1. Two companies have the following breakdown of net income: Company A Company B

Revenues $100,000 $ 40,000

Expenses 25,000 20,000

Net Income 75,000 20,000

Which company did a better job of keeping expenses under control?

2. Which of these ratios are profitability ratios?

A.Asset Turnover

B.Return on Assets

C.Return on Sales

D.Debt Ratio

E.Both A & B

F.Both B & C

3. Two companies have the following breakdown of financialinformation: Company A Company B

Revenues $800,000 $ 108,000

Expenses 560,000 75,600

Assets 2,000,000200,000

Liabilities 1,700,000 200,000

Which company is the riskiest?

4. A company had $50,000 in sale in 2020, $85,000 in sales in 2021 and $100,000 in sales in 2022 Using a trend analysis, what amount of sales growth did the company have in 2021 from the base year?

A.50%

B.200%

C.70%

D.100%