In 2012,C Co's gross profit ratio was 70.4% and their profit margin was 18.8%.In 2012,P Co's gross profit ratio was 58.3% and their profit margin was 8.9%.Which of the following is false?
A) C Co's cost of goods sold was a lower percentage of sales than P Co's.
B) In 2012,C Co's profit margin was 111.2% greater than P Co's which would contribute to a higher return on total investment.
C) The major reason for P Co's lower profit margin is that their selling,general and administrative expenses were double the percentage of sales compared to C Co's percentage.
D) C Co looks to be a better investment than P Co.
Correct Answer:
Verified
Q62: An aircraft company would most likely have
A)
Q69: In 2012,C Co's total liabilities were $10,742
Q71: A company with $60,000 in current assets
Q73: A new company with a high property,plant,and
Q75: The inventory turnover ratio is calculated by
Q77: A general rule to use in assessing
Q78: In 2012,C Co's return on owners' equity
Q97: A weakness of the current ratio is
A)
Q101: In simple terms, a business strategy establishes
Q120: The only way an investor will get
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents