Answered step by step
Verified Expert Solution
Link Copied!

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?

image text in transcribed

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

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

Sovereign Debt Crisis The New Normal And The Newly Poor

Authors: D. Chorafas

1st Edition

0230298400, 9780230298408

More Books

Students also viewed these Accounting questions

Question

Explain the meaning of hazards of litigation.

Answered: 1 week ago