2 Roak Company and Clay Company are similar firms that operate in the same Industry. Clay began operations 2 years ago and Roak started 5 years ago. In the current year, both companies pay 8% Interest on their debt to creditors. The following additional Information is available. Roak Company 1 Yr Ago Clay Company 1 Yr Ago 2 Yrs Ago 8 02:54:19) 1.8 Current Yr 3.8 10.00% 3.1% Current Yr 2.2 6.9% Total asset turnover Return on total assets Profit margin ratio Sales 2 Yrs Ago 3.7 11.6% 3.8% 3.5 11.0% 3.2% $415,000 6.3% 2.2 6.6% 4.4% 4.2% 4.3% $445,000 $431,000 $245,000 $285,000 $145,000 eBook 1. (a) Which company has the better profit margin? (b) Which has the better asset turnover? (c) Which has the better 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? References Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 (a) Which company has the better profit margin? (b) Which has the better asset turnover? (c) which has the better return on assets? (a) Which company has the better profit margin? (b) Which has the better asset turnover? Which has the better return on assets? 8.75 points Clay Roak 2 Roak Company and Clay Company are similar firms that operate in the same Industry. Clay began operations 2 years ago and Roak started 5 years ago. In the current year, both companies pay 8% Interest on their debt to creditors. The following additional Information is available. Clay Company 1 Yr Ago 2 Yrs Ago Roak Company 1 Yr Ago 3.5 11.00% 3.2% Current Yr 2.2 1.8 8 02:53:49) Current Yr 3.8 10.0% 3.1% $445,000 2 Yrs Ago 3.7 11.6% 3.8% $431,000 Total asset turnover Return on total assets. Profit margin ratio Sales 6.9% 6.3% 2.2 6.6% 4.2% 4.4% $245,000 $285,000 4.3% $415,000 $145,000 eBook 1. (a) Which company has the better profit margin? (b) Which has the better asset turnover? (c) Which has the better 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? References Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Which company has the better rate of growth in sales? Which company has the better rate of growth in sales? 8.75 points Clay Roak 2 Roak Company and Clay Company are similar firms that operate in the same industry. Clay began operations 2 years ago and Roak started 5 years ago. In the current year, both companies pay 8% Interest on their debt to creditors. The following additional Information is available. Clay Company 1 Yr Ago 2 Yrs Ago Current Yr 2.2 2.2 1.8 8 02:53:25 Current Yr 3.8 10.0% 3.1% Total asset turnover Return on total assets Profit margin ratio Sales Roak Company 1 Yr Ago 3.5 11.00% 3.2% $415,000 2 Yrs Ago 3.7 11.6% 3.8% $431,000 6.3% 6.9% 4.2% 6.6% 4.4% 4.3% $445,000 $245,000 $285,000 $145,000 eBook 1. (a) Which company has the better profit margin? (b) Which has the better asset turnover? (c) Which has the better 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? References Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 (a) Did Roak successfully use financial leverage in the current year? (b) Did Clay? (a) Did Roak successfully use financial leverage in the current year? (b) Did Clay?