Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Question 1 - 15 Marks One plc and Piece ple were in the same industry. The following information appeared in their 2019 accounts: Revenue Total
Question 1 - 15 Marks One plc and Piece ple were in the same industry. The following information appeared in their 2019 accounts: Revenue Total operating expenses Average total assets during 2019 One $m 200 180 150 Piece $m 300 275 125 Required: 1. Calculate the following ratios for each company and show the numerical relationship between them: Their rate of return on the average total assets. The net profit percentages. The ratio of revenue to average total assets. (8 marks) 2. Comment on the relative performance of the two companies. (3 marks) 3. State any additional information you would require as: A potential shareholder. A potential loan creditor. (4 marks)
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