As treasurer of the Universal Bed Corporation, Aristotle Procrustes is worried about his bad debt ratio, which is currently running at 6.2%. He believes that imposing a more stringent credit policy might reduce sales by 5.2% and reduce the bad debt ratio to 4.2%. Assume current sales of $100. a. If the cost of goods sold is 82% of the selling price, calculate the profit under both the current policy and the proposed policy. (Do not round intermediate calculations. Round your answers to 2 decimal places.)

Companies hd and ld are both profitable, and they have the same total assets (ta), total invested capital, sales (s), return on assets (roa), and profit margin (pm). both firms finance using only debt and common equity. however, company hd has the higher total debt to total capital ratio. which of the following statements is correct? a) company hd has a higher assets turnover than company ld. b) company hd has a higher return on equity than company ld. c) none of the other statements are correct because the information provided on the question is not enough. d) company hd has lower total assets turnover than company ld. e) company hd has a lower operating income (ebit) than company ld