Exercise $21\mathrm{.}013\mathrm{.}2$ and Steak Company and Clay Company are similar firms that operate in the sanse industry. Clay began operations $2$ yang Roak started $5$ years age. In the carrest year, both companies pay $16\%$ interest on their debt to creditors. The following additional information is available. Raak Company Clay Company Current Year $1$ Year Ago $2$ Years Ago Carrent Year $1$ Year Ago $2$ Years Ago Total asset turnover $3\mathrm{.}12\mathrm{.}83\mathrm{.}01\mathrm{.}74\mathrm{.}80\%1\mathrm{.}5$ Return on total assets $7\mathrm{.}40\%7\mathrm{.}00\%6\mathrm{.}90\%4\mathrm{.}50\%3\mathrm{.}20\%$ Profit saargin ratio $2\mathrm{.}40\%2,50\%2\mathrm{.}30\%2\mathrm{.}80763\mathrm{.}00\%2\mathrm{.}90\%$ Sales $410,0003380,0005396,000$ $ $210,000$ $ $170,000$ $ $1.($a$)$ Which company has the better profit margin? $($b$)$ Which has the better asset tarnover? $($c$)$ Which has the better return on assets? $2.$ Which compuery has the better rate of growth in sales? $3.$ Did the company maccessfully use financial leverage is the current year, as judged by return on assets exceeding its interest rate on debt, in the case of $($a$)$ Did Roak Corrpury socoonfally use financial leverage in the current year, as judged by return on asets exccoding its interest rate on debt? $(6)$ Did Clay Company mecessfully use financial leverage in the vurront year, as jadged by return on assets exccoding its interent rate on debt?