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Ayayai Corporation and Blue Corporation, two companies of roughly the same size, are both involved in the manufacture of shoe-tracing devices. Each company depreciates its

Ayayai Corporation and Blue Corporation, two companies of roughly the same size, are both involved in the manufacture of shoe-tracing devices. Each company depreciates its plant assets using the straight-line approach. An investigation of their financial statements reveals the information shown below.

Ayayai Corp.

Blue Corp.

Net income

$ 239,890 $ 314,000

Sales revenue

1,713,500 1,962,500

Total assets (average)

4,283,750 3,925,000

Plant assets (average)

2,890,000 1,886,000

Intangible assets (goodwill)

381,100 0

(a) For each company, calculate these values: (Round return on assets and profit margin to 1 decimal place, e.g. 6.2% and asset turnover to 2 decimal places, e.g. 17.54.)

Ayayai Corp.

Blue Corp.

(1)

Return on assets

enter the return on assets for Ayayai Corp in percentages rounded to 2 decimal places

%

enter the return on assets for Blue Corp in percentages rounded to 2 decimal places

%
(2)

Profit margin

enter the profit margin for Ayayai Corp in percentages rounded to 2 decimal places

%

enter the profit margin for Blue Corp in percentages rounded to 2 decimal places

%
(3)

Asset turnover

enter the asset turnover for Ayayai Corp rounded to 2 decimal places

times

enter the asset turnover for Blue Corp rounded to 2 decimal places

times

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