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Fill this outRoak Company and Clay Company are similar firms that operate in the same...

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Accounting

Fill this outRoak 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 7% 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?
(a) Which company has the better profit margin?
(b) Which has the better asset turnover?
(c) Which has the better return on assets?
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