Roak Company and Clay Company are similar firms that operate in the same industry Clay began operations 2 years ago and started 5 years ago in the current year, both companies pay 7% interest on their debit to credors. The following additional infor is available. Woak Company Total asset turnover Return on total ass Profit margin ratio: Sales 4.3 Currant Year 1 Year Age 3 Years Age Current Year 1 Year A Clay Company 9.06 3.69 $470,000 4.0 13.09 3.76 $440,000 4.2 12.65 3.56 $456,000 2.7 217 9.94 5.36 $270,000 5149 $330,000 3.Tania Age 8.9 5.36 3.36 $175,000 1. (a) Which company has the better profit margin? (b) Which has the better asset turnover? (c) Which has the better return on assets? 2. Which company has the better rate of growth in sales? 3. Did the company successfully use financial leverage in the current year, as judged by return on assets exceeding its interest rate on debt, in the case of (a) Roak and (b) Clay? 1. (a) Which company has the better profit margin? (b) Which has the better asset turnover? (c) Which has the better retur 2. Which company has the better rate of growth in sales? 3. Did the company successfully use financial leverage in the current year, as judged by return on assets exceeding its debt, in the case of (a) Roak and (b) Clay? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 (a) Which company has the better profit margin? (b) Which has the better asset turnover? (c) Which has the better re assets? (a) Which company has the better profit margin? (b) Which has the better asset turnover? (c) Which has the better return on assets? Required Required 2 > 10:58 Allet turnover Return on total assets Profit margin ratio Sales 4.3 9.0% 3.69 $470,000 1 Year Ag 4.0 12.09 3.76 $440,000 Clay Company 1. Years Agn. Durres Year 1 Year 2 Years Ag 4.2 12.69 3.59 $456,000 2.9 3.98 5.26 $270,000 3.7 5.66 5.49 $230,000 5.36 5.39 $175,000 1. (a) Which company has the better profit margin? (b) Which has the better asset turnover? (c) Which has the better return on assets? 2. Which company has the better rate of growth in sales? 3. Did the company successfully use financial leverage in the current year, as judged by return on assets exceeding its interest rate o debt, in the case of (a) Roak and (b) Clay? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Which company has the better rate of growth in sales? Which company has the better rate of growth in sales? 5051 Total asset turnover Return on total assets Profit margin ratio Sales 3.3 Current Year 1 Year San koak Company Clay Company 2. Youre App Carr Your 1 Year Agn 3. Tekce Au 4.6 12.0% 3.74 $440,000 4.3 12.69 3.59 $456.000 5.WW 5.2V 5375,909 4.3 9.04 3.04 8470,000 5.66 9.49 $230,000 5.34 5.34 $170,000 1. (a) Which company has the better profit margin? (b) Which has the better asset turnover? (c) Which has the better return on assets 2. Which company has the better rate of growth in sales? 3. Did the company successfully use financial leverage in the current year, as judged by return on assets exceeding its interest rm debt, in the case of (a) Roak and (b) Clay? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Requiled 3 Did the company successfully use financial leverage in the current year, as judged by return on assets exceeding its interest rate on debt, in the case of (a) Roak and (b) Clay? (a) Did Roak Company successfully use financial leverage in the current year, as judged by return on assets exceeding its interest rate on debt? (b) Did Clay Company successfully use financial leverage in the current year, as judged by return on assets exceeding its interest rate on debt? < Required 2 Required 3>