Recent Posts • Latest Topics • Unanswered Questions

The following comparison is presented for Pro Classic, Inc. to the industry averages:IndustryPro ...

KarenSmith

wrote...

Go to Answer

Posts: 530

Rep:

7 years ago

The following comparison is presented for Pro Classic, Inc. to the industry averages:IndustryPro ...

The following comparison is presented for Pro Classic, Inc. to the industry averages:
   Industry
   Pro Classic, Inc.   Averages
   Return on assets   21.0%   10.2%
   Profit margin before income taxes   10.0%   6.0%
   Total asset turnover   3.5   2.6
   Profit margin after income tax   6.7%   3.3%
   Return on equity after income taxes   23.4%   18.4%
   Return on equity before income taxes   18.3%   10.9%
What conclusion can be drawn when comparing Pro Classic's return on equity before income taxes to the industry average?
A) Pro Classic is earning more before tax income on its equity than the industry average.
B) Pro Classic is earning more before tax income on its investment by owners than the industry average.
C) Pro Classic is earning more before tax income on its assets than the industry average.
D) Pro Classic's sales are contributing more to earnings than the industry average.

Textbook

Survey of Accounting: Making Sense of Business

Edition: 1^st

Author: Terrell

Read 92 times

3 Replies

Report

Replies

Answer verified by a subject expert

mourningbird

wrote...

Related Topics

KarenSmith Author

wrote...

7 years ago

You guys have been so helpful

Report

mourningbird

wrote...

7 years ago

Report

New Topic

Quick Reply

Explore

Post your homework questions and get free online help from our incredible volunteers

1125 People Browsing

120 Signed Up Today

Start New Topic Take the Tour CoursesNew Study Tools Topics Trending Browse by Textbook

Live Chat

AJAX Chat © blueimp.net Integrated with SMF

Related Images

208

2117

261

Your Opinion

Previous poll results: Who will win the 2024 president election?

Bonobos, Chimpanzees, and the 98% DNA Link

It's sore throat season, why does my mucus have red spots?

Strange Ingredients Lurking in Doritos Chips

Courses by Biology Forums

The Toxic Skin and Fungi Defense

Ready to ask a question on Biology Forums? Try it out

Join Our Community

Biology Forums - Study Force is a free online homework help service catered towards college and high school students. Get homework help and answers to your toughest questions in biology, chemistry, physics, mathematics, engineering, accounting, business, humanities, and more. Master your assignments quickly with thousands of step-by-step solutions to countless textbook questions asked and answered by our members. If we don't have your question, don't worry. You can ask any homework question and get expert homework help in as little as two hours.

Our extensive online study community is made up of college and high school students, teachers, professors, parents and subject enthusiasts who contribute to our vast collection of study resources: textbook solutions, study guides, practice tests, practice problems, lecture notes, equation sheets and more. With our help, your homework will never be the same!

Join for free today

How is Biology Forums - Study Force different than tutoring?

Home Search Q & A Board Gallery Resource Library Blog Dictionary Chat	Quick Links Start a Topic Latest Topics Unanswered Questions Courses Study Tools Browse by Textbook	Social Facebook YouTube Community Stats Who's Online Trending Staff	Help About Us Take the Tour Study Tips Posting Guidelines Terms and Policies Contact Us
Biology Forums - Study Force © 2010-2024 \| Powered by SMF \| SMF © 2015, Simple Machines \| Sitemap Biology-Forums.com is not affiliated with any publisher. Book covers, title and author names appear for reference only.