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In analyzing its current year operating performance, Merle Co. determined that its return on assets improved significantly from the prior year. Total assets and operating expenses were stable and overall debt decreased, while net earnings increased due to greater sales volume. An additional 50,000 shares of common stock were authorized during the year. Which of the following statements best explains Merle's improved return on assets in the current year?
i. Merle made more efficient use of its assets.
ii. Merle made more efficient use of its cash flow.
iii. Merle increased its outstanding capital.
iv. Merle decreased its operating expenses.

Respuesta :

anthougo

The best statement that explains Merle Co.'s improved return on assets in the current reporting year is i. Merle made more efficient use of its assets.

By holding its total assets and operating expenses stable and decreasing its debt, Merle Co. was able to make efficient use of its assets, generating more sales.

Merle did not just make more efficient use of its cash flows, increase its outstanding capital, or decrease its operating expenses.

Thus, best explanation is that i. Merle made more efficient use of its assets.

Learn more about making efficient use of assets to generate more sales revenue here: https://brainly.com/question/13442889

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