Below are amounts found in the income statements of two companies.

Company Net Sales Net Income

Beginning

Assets Ending Assets

ABC $$825,000$ $$37,000$ $$395,000$ $$502,000$

XYZ $600,00035,000380,000487,000$

Required:

$1.$ For each company, calculate $($a$)$ profit margin, $($b$)$ profit margin ratio, $($c$)$ Asset

Turnover and $($d$)$ Return on Assets.

Transaction Profit

Margin

Profit

Margin

Ratio

Asset

Turnover

Return on

Assets

ABC $0$

XYZ

$2.$ Compare the two companies using the above info?