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Company 1 Company 2 Net Sales $7988 $1222 Cost of Goods Sold $1144 $1298 Gross Margin $6844 $-76 Operating Expense $829 $620 Operating Profit Margin

Company 1

Company 2

Net Sales

  1. $7988
  1. $1222

Cost of Goods Sold

  1. $1144
  1. $1298

Gross Margin

  1. $6844
  1. $-76

Operating Expense

  1. $829
  1. $620

Operating Profit Margin

  1. $6015
  1. $-696

Operating Income %

  1. 75.30%
  1. -56.96%

Net Profit Margin

  1. $5785
  1. $-817

Net Profit Margin %

  1. 72.42%
  1. -66.86%

Total Current Assets

  1. $1264
  1. $1039

Fixed Assets

  1. $9832
  1. $3423

Total Assets

  1. $11096
  1. $4462

Asset Turnover

  1. 71.99%
  1. 27.39%

Current Liabilities

  1. $372
  1. $226

Long Term Liabilities

  1. $888
  1. $423

Total Liabilities

  1. $1260
  1. $649

Net Worth (Owners Equity)

  1. $9836
  1. $3813

ROA %

  1. 52.14%
  1. -18.31%

GMROI

  1. 297.57%
  1. -10.53

1. Which company has the better overall financial health?

2. What financial measure(s) did you focus on to determine overall financial health?

3. For the weaker company, what strategies would you recommend they implement to improve their financial statement? (must list at least 3 strategies)

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