Question
5 Following are data for BioBeans and GreenKale, which sell organic produce and are of similar size. BioBeans GreenKale Average total assets $ 200,000 $
5
Following are data for BioBeans and GreenKale, which sell organic produce and are of similar size.
| BioBeans | GreenKale | |
|---|---|---|
| Average total assets | $ 200,000 | $ 157,500 |
| Net sales | 75,000 | 47,250 |
| Net income | 12,000 | 6,000 |
1a. Compute the profit margin for both companies. 1b. Compute the return on total assets for both companies. 2. Based on analysis of these two measures, which company is the preferred investment?
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Accounting For Managers Interpreting Accounting Information For Decision Making
Authors: Paul M. Collier, Sandy M. Kizan, Eckhard Schumann
1st Canadian Edition
1118037960, 9781118037966
