a.
Introduction: The return on assets is a financial ratio which states that how profitably a company has employed its assets. In other words, how the company has utilized its assets to generate income.
Requirement 1
The return on assets for companies C and P.
b.
Introduction: Comparison between similar companies in the same industry is crucial to the assessment of the company’s performance. A company’s financial data in absolute form can be useful measures if the same data is used to compare its rival company or competitors.
Requirement 2
Which of the two companies C and P is more successful in terms of the total amount of sales to customers?
c.
Introduction: Comparison between similar companies in the same industry is crucial to the assessment of the company’s performance. A company’s financial ratios, when compared with the industry data, can reveal lots of valuable information which the financial statements can not reveal.
Requirement 3
Which company has been more successful in terms of generating a net income from its total asset investment?

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Chapter 1 Solutions
FINANCIAL & MANAG ACCT (CH. 1 - 24 LOOSE
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