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Blue Corporation and Swifty Corporation, two companies of roughly the same size, are both involved in the manufacture of shoe- tracing devices. Each company depreciates
Blue Corporation and Swifty 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 following information. Blue Corp. Swifty Corp. Net income $265,600 $335,280 Sales revenue 1,328,000 1,397,000 Total assets (average) 3,320,000 3,048,000 Plant assets (average) 2,510,000 1,880,000 Intangible assets (goodwill) 391,100 0 (a) For each company, calculate these values: (Round answers to 2 decimal places, e.g. 6.25% or 17.54.) (1) Return on assets (2) Profit margin (3) Asset turnover Blue Corp. % % times Swifty Corp. % % times
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