Question
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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