Comparisons of income can be very difficult for two companies even though they sell the same products in equal volume. Why? Cite the names of the companies.

What is the difference between book value per share of common stock and market value per share? Why does this disparity occur? Cite an example from WSJ.

Polly Esther Dress Shops, Inc., can open a new store that will do an annual sales volume of $800,000. It will turn over its assets 3.5 times per year. The profit margin on sales will be 12 percent. What would net income and return on assets (investment) be for the year? Show all calculations.