books have not yet been closed tor 2017 of roughly the same re- P9-7A Blythe Corporation and Jacke Corporation, two companies size, are both involved in the manufacture of shoe-tracing devices. Each compan ciates its plant assets using the straight-line approach. An investigation of their in statements reveals the information shown below. y dep al Net income Sales revenue Total assets (average) Plant assets (average) Intangible assets (goodwill) Blythe Corp. Jacke Corp. $ 300,000 1,200,000 3,000,000 1,800,000 0 240,000 1,150,000 3,200,000 2,400,000 300,000 Instructions (a) For each company, calculate these values: (1) Return on assets (2) Profit margin. (3) Asset turnover (b) Based on your calculations in part (a), comment on the relative effectiveness of the two companies in using their assets to generate sales. What factors complicate your ability to compare the two companies? P9-8A In recent years, Jayme Company has purchased three machines. Because of frequent employee turnover in the accounting department, a different accountant was in charge of selecting the depreciation method for each machine, and various methods have been used. Information concerning the machines is summarized in the table below. Salvage Useful Life Machine Acquired Cost Value (in years) Depreciation Method 1 Jan. 1, 2015 $96,000 $12,000 July 1, 2016 85,000 10,000 Nov. 1, 2016 66,000 6,000 Straight-line Declining-balance Units-of-activity or the declining-balance method, Jayme Company uses the double-declining rate. For e units-of-activity method, total machine hours are expected to be 30,000. Actual hours f use in the first 3 years were 2016, 800; 2017, 4,500; and 2018, 6,000. structions Compute the amount of accumulated depreciation on each machine at December 31,2018 ) If machine 2 was purchased on April 1 instead of July 1, what would be the deprecia tion expense for this machine in 2016? In 2017 -9A Megan Corporation purchased machinery on January 1, 2017, at a cost of $250,00 e estimated useful life of the machinery is 4 years, with an estimated salvage value the end of that period of $30,000. The company is considering different dep thods that could be used for financial reporting purposes