Use the Following Information for the Question(s) That Follow

question 56

Multiple Choice

Use the following information for the question(s) that follow.

Patco and Ramsco are competitors in the same industry and have the following ratios.


-Based on the information above, we can conclude that

• A) Patco is more financially conservative than Ramsco.
• B) Patco is more liquid than Ramsco.
• C) Patco is reinvesting a higher percentage of its earnings in the business than Ramsco.
• D) Patco is using assets less efficiently than Ramsco.

---

Definitions:

Cost Centers

Parts of an organization that do not produce direct profit but do incur costs, such as customer service and research departments.

Quality Control

The process of ensuring products and services meet customer expectations and regulatory standards consistently.

Division Profits

The financial gains realized by a specific division within a larger company or organization.

Company-wide Profits

The total earnings of a company after all expenses and taxes have been deducted, across all divisions and product lines.