Question: ( 4 ) Return on investment. ( Use average assets and use Earnings from continuing operations before income taxes rather than net earnings. ) (
Return on investment. Use average assets and use Earnings from continuing operations before income taxes rather than net earnings.
Gross margin percentage.
Asset turnover. Use average assets.
Return on sales. Use Earnings from continuing operations before income taxes rather than net earnings.
Plant assets to longterm debt ratio.
b Which company appears to be more profitable? Identify which ratios from Requirement a you used to reach your conclusion.
c Which company appears to have the higher level of financial risk? Identify which ratios from Requirement a you used to reach your conclusion.
d Which company appears to be charging higher prices for its goods? Identify which ratios from Requirement a you used to reach your conclusion.
e Which company appears to be the more efficient at using its assets? Identify which ratios from Requirement a you used to reach your conclusion.
Please just e Thank you for your help!
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