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Question 24 Not yet Company 1 has Profit Margin of 8.2% and a gearing ratio of answered 67.2%. Marked out of 1.00 Company 2 has

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Question 24 Not yet Company 1 has Profit Margin of 8.2% and a gearing ratio of answered 67.2%. Marked out of 1.00 Company 2 has Profit Margin of 6.3% and a gearing ratio of 53.4%. P Flag question Based on these ratios, what is generally not true about these two companies Questi Answe Company 1 has higher profitability and higher risk. Market 1.00 F Flag Company 2 has lower profitability and lower risk questi Company 1 has high amount of borrowed funds Questi Answe Company 2 has lower profitability and higher risk. Market 1.00 Question 33 Not yet answered This ratio expresses the relationship between the operating profit generated during Marked out of 1.00 a period and the average long-term capital invested in the P Flag question business Question 34 A Assets Turnover Not yet stomers take answered to Marked out of 1.00 Return on Capital Employed Flag question Earnings Per Share Question 35 c Profit Margin Answer saved Marked out of Question 34 Not yet A ratio that indicates how long, on average, credit customers take answered to pay the amounts that they owe to the business is: Marked out of 1.00 . P Flag question Average Collection Period Question 35 Answer saved Marked out of 1.00 Working Capital Turnover Period P Flag question Inventory Turnover Period Question 36 Average Payment Period Answer saved sept: Question 37 Not yet Alex business has following results answered 2014 2015 Marked out of 1.00 Current ratio 2.0 1.6 P Flag question Acid test ratio 0.8 0.6 Based on the above information, which of following is false? Improvement in liquidity from 2014 to 2015 Business had less liquid assets compared to it liquid liabilities in 2014 Business had less liquid assets compared to it liquid liabilities in 2015 Decline in liquidity from 2014 to 2015

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