Firm A has a Return on Equity (ROE) equal to 20%, while firm B has Firm B has a higher profit margin than firm A an ROE of 12% during the same year. Both firms have a total debt ratio (D/V) equal to 0.8. Firm A has an asset turnover ratio of 0.8. while Firm A is less leveraged than firm B firm B has an asset turnover ratio equal to 0.4. Firm B is less leveraged than firm A Which one of the following statements is true? There is not enough information to talk about profitability for any of both firms Firm A has a higher profit margin than firm B Both firms are equally profitable Jonathan Jacobs runs a small shop. He is concerned with the liquidity Please use the complete box to fill in the ratio as percentage points. Numbers only, three digits position of his shop as he has heard that liquidity problems are one of the most frequent explanations for business failure. The following data is available: Merchandise stock = 13,650: Debtors = 8,500, Bank = 3,330, Creditors = 9,100. Please calculate his Quick Ratio (aka "Acid Test Ratio) Colorlux Indoor Paints have 360 labor-hours available. There is no Number of units only, two digits, please use all the boxes regardless of the number you find! limit on machine-hours. They can sell all the Yellow paint they want but can only sell maximum of 70 units and 50 units of Blue and Red respectively. Blue Yellow Red Contribution margin per unit 32 21 28 Labor-hours per unit 4 3 4 Machine-hours per unit 10 8 2 How many units of Yellow paint should be produced and sold? Which two of the following are considered liquidity measures? What happens if you prolong the depreciation period of an asset? (one answer) Return on assets Cash coverage ratio Days sales in inventory Current ratio Fixed asset turnover Price-earings ratio EBITDA goes up EBITDA goes down The depreciation method changes EBIT goes up EBIT goes down Nothing - your income statement is not affected The asset gets revalued A concept used for calculating margins A concept used to describe cost absorption A concept used for calculating activity cost Cost by unit absorbed into fixed cost A concept used to describe absortion costing Cost by product batch one and use both bones provided. Just numbers, two digits What are "cost pools"? (one best answer)