Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. company a and company b reported the following for

Company A and Company B reported the following for the year ended December 31, 2020:...

70.2K

Verified Solution

Question

Accounting

image

Company A and Company B reported the following for the year ended December 31, 2020: Company A Company B Industry Profit Margin (PM) 10.0% 6.0% 8.2% Asset Turnover (AT) 4 .9 .9 Return on Assets (ROA) 4.0% 5.4% 7.4% Presume Company A and Company B are manufacturing businesses with Property, Plant & Equipment, Accounts Receivable and Inventories. Based on this information, please answer the following: 1. What are your observations about Company A compared to its industry? 2. Compared to its industry, what specific actions might Company A take to improve its ROA? What are the risks related to these actions? 3. What are your observations about Company B compared to its industry? 4. Compared to its industry, what specific actions might Company B take to improve its ROA? What are the risks related to these actions

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Finance
1.2K views

Indicate and Discuss how will be affected the prices (and the yields) of the next Bonds...

Basic Math
1.2K views

You want to estimate the mean weight of quarters in circulation. A sample of 50 quarters...

General Management
1.2K views

Bus 499 w10 Assign#3 Analyze the competitive environment to determine Walmarts most significant competitor. Compare their strategies...

Biology
1.2K views

Important characteristics of antimicrobial drugs include...low toxicity for human tissueshigh toxicity against microbial cellsdo not...

Biology
1.2K views

Which statement describes the difference between incomplete dominance and codominance OA In incomplete dominance both...

Biology
1.2K views

Question 5 Every state bases the structure of its government and its laws on Points...

Basic Math
1.2K views

At Handy Hardware Shop s annual spring cleaning sale every ratchet set in the shop...

Accounting
1.2K views

Single Plantwide Factory Overhead Rate Salty Sensations Snacks Company manufactures three types of snack foods:...

Accounting
1.2K views

Whancous tome! supoo u thes Whancous tome! supoo u thes

Accounting
1.2K views

Given the following tax structure: a. What is the minimum tax that Pedro should pay...

Accounting
1.2K views

The standard quantity allowed for the units produced was 4,500 pounds, the standard price was...

Accounting
1.2K views

ACT 212 Principles of Accounting II Practice Question:s Chapter 13: Corporations: Organization, Stock Transactions, and...