Business, 05.07.2020 14:01 jinxjungkook3
The following footnote appeared in Crabtree Company's 20X7 annual report: "On December 31, 20X7, Crabtree recognized a restructuring charge of $20 million, of which $5 million was for severance pay for employees who will be terminated in 20X8 and $15 million was for land that became permanently impaired in 20X7."Based only on these changes, Crabtree’s net profit margin and fixed asset turnover ratio (using year-end financial statement values) in 20X8 as compared to 20X7 will be:
Net profit marginFixed asset turnover
A. HigherHigher
B. HigherUnchanged
C. LowerHigher
Answers: 1
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The following footnote appeared in Crabtree Company's 20X7 annual report: "On December 31, 20X7, Cra...
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