Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Consider the following ratios for Parker Tool & Die: a ) Gross profit margin year x 1 = 2 0 . 8 4 b )

Consider the following ratios for Parker Tool & Die:
a) Gross profit margin year x1=20.84
b) Gross profit margin year 2=22,83%
c) Net profit margin year x1=-0,09%
d) Net profft margin year 2=1,33%
e) Debtor days (Yx1)=0 vs (Yx2)=3 days
f) Creditor days )=35 days vs )=68 days
What does this trend indicate in terms of the business' profitability?
A. Profits have improved, year on year.
B. Profits have decreased, as the time taken to pay creditors has been extended.
C. Profits have improved as debtor days have decreased.
D. Profits have improved as debtors are collected more efficiently.
image text in transcribed

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

Corporate Financial Management

Authors: Glen Arnold

4th Edition

0273719068, 978-0273719069

More Books

Students also viewed these Finance questions

Question

What problems do you think the illness causes? How does it work?

Answered: 1 week ago