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2(A)Profit Margin ratio Company Net Income/Net Sales Western Tech 474.0/10697.0*100 4.43% Lativa 5.2/133.5*100 3.90% 2(B) Return on Total assets Company Net Income/ Average total assets

2(A)Profit Margin ratio
Company Net Income/Net Sales
Western Tech 474.0/10697.0*100 4.43%
Lativa 5.2/133.5*100 3.90%
2(B) Return on Total assets
Company Net Income/ Average total assets
Western Tech 474.0/6576.95*100 7.21%
Lativa 5.2/82.75*100 0.06
2(CC) Return on Equity
Company Net income-Preferred Dividend/Average Shareholder's Equity
Western Tech 474.0-0/3914.85*100 12.10%
Lativa 5.2/65.95*100 7.90%

which company (2) would be the better investment?

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