Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Given the relative cost structures of the two companies, and the change in sales for the 2 companies, what would you have expected for the
Given the relative cost structures of the two companies, and the change in sales for the 2 companies, what would you have expected for the change in Gross Profit? An increase? Decrease? Why?
2020 Asset Turnover Average inventory Average Shareholders Equity Average Total Assets Cost of Goods Sold Current liabilities Current Ratio EBIT COMPANY A 2019 0.61 762.0 5,510.0 14,961.0 5,416.0 3,251.0 1.89 908.0 822.0 3,900.0 3,650.0 40.26 0.47 769.0 5,804.0 14,894.0 4,396.0 3,435.0 1.68 298.0 252.0 4,071.0 2,626.0 COMPANY B 2019 1.71 42,216.0 86,859.0 278,843.0 278,464.0 126,774.0 1.49 17,099.0 16,679.0 3,691.0 198,360.0 41.60 2020 1.72 44,883.0 89,278.5 281,764.0 289,093.0 130,471.0 1.45 12,409.0 10,159.0 2,377.0 194,706.0 40.25 EBT 37.40 7.11 5.72 6.60 6.44 1.18 Goodwill Gross Profit Gross Profit Inventory Turnover Leverage Ratio Net Income Operating Expenses Property, plant and Equipment Return on Assets Return on Equity Return on Sales Revenues Total Assets Total Current Assets Total Equity Total Liabilities Total Non-Current Assets 1.03 11,211.0 459,725.0 28,290.0 4.02 1.22 3,730.0 471,390.0 46,046.0 1.32 1.10 1,339.0 8,158.0 1,109.0 8.95 24.30 14.77 9,066.0 15,047.0 6,140.0 5,801.0 9,239.0 8,907.0 178.0 6,724.0 1,013.0 1.20 3.07 2.53 7,022.0 14,741.0 5,783.0 5,806.0 8,931.0 8,958.0 12.91 2.35 476,824.0 275,055.0 189,263.0 91,046.0 174,297.0 85,792.0 4.18 0.77 483,799.0 288,473.0 188,549.0 87,511.0 192,089.0 99,924.0
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started