Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

18. In 2019 Foxglove Co. had fixed operating costs of $500,000 and a variable operating cost percentage of 68%. In 2020 sales and fixed operating

image text in transcribed
18. In 2019 Foxglove Co. had fixed operating costs of $500,000 and a variable operating cost percentage of 68%. In 2020 sales and fixed operating costs were unchanged from the previous year, but the variable operating cost percentag] rose to 72%. Which of the following is most correct? a. the company's total asset turnover ratio decreased in 2020 b. the company's fixed asset turnover ratio increased in 2020 c. the company's operating profit margin decreased in 2020 d. the company was more risky in 2020 due to higher operating leverage e. both a and d are correct Question 19 4 pts 19. In 2018 Azalea Co. had a ROE of 20%. In 2019, ROE fell to 18%. The following ratios were the same in 2018 and 2019: operating profit margin, total asset turnover, equity multiplier. Which of the following is most likely true? a. DSO was higher in 2018 than 2019 acBook Pro

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Cybersecurity In Finance

Authors: Sylvain Bouyon, Simon Krause

1st Edition

1786612178, 9781786612175

More Books

Students also viewed these Finance questions