Reference no: EM132968702

Problem 1: A company's gross profit margin has increased from 35% to 55%. Therefore, its net income has:

Problem 1:

a. Increased, but not by the same percentage

b. Decreased

c. Increased by the same percentage

d. Not enough information provided to determine if net income has increased or decreased

Problem 2: A firm has a lower asset turnover ratio than the industry average, which implies

Select one:

a. the firm is less likely to avoid insolvency in the short run than other firms in the industry

b. the firm is less profitable than other firms in the industry

c. the firm is utilizing assets less efficiently than other firms in the industry.

d. the firm has a lower P/E ratio than other firms in the industry.