Roak Company and Clay Company are similar firms that operate in the same industry. Clay began operations $2$ years ago and Roak

started $5$ years ago. In the current year, both companies pay $6\%$ interest on their debt to creditors. The following additional information

is available.

$($a$)$ Which company has the better profit margin? $($b$)$ Which has the better asset turnover? $($c$)$ Which has the better return on assets?

Which company has the better rate of growth in sales?

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?

Complete this question by entering your answers in the tabs below.

$($a$)$ Which company has the better profit margin? $($b$)$ Which has the better asset turnover? $($c$)$ Which has the better return on

assets?

Which company has the better rate of growth in sales?

Which company has the better rate of growth in sales?

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?