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Company A has net income of $100,000 and sales of $1,200,000 during the year. Their average total assets were $800,000. Company B has net income

Company A has net income of $100,000 and sales of $1,200,000 during the year. Their average total assets were $800,000. Company B has net income of $55,000 and sales of $600,000 during the year. Their average total assets were $340,000. Which of the following is true regarding the profitability of these two companies?

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