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Concord Corporation and Cheyenne Corporation, two companies of roughly the same size, are both involved in the manufacture of shoe-tracing devices. Each company depreciates its

Concord Corporation and Cheyenne 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 information shown below.

Concord Corp.

Cheyenne Corp.

Net income

$ 255,720 $ 323,120

Sales revenue

2,131,000 2,308,000

Total assets (average)

5,327,500 4,616,000

Plant assets (average)

2,870,000 1,861,000

Intangible assets (goodwill)

367,100 0

(a) For each company, calculate these values: (Round return on assets and profit margin to 1 decimal place, e.g. 6.2% and asset turnover to 2 decimal places, e.g. 17.54.)

Concord Corp.

Cheyenne Corp.

(1)

Return on assets

enter the return on assets for Concord Corp in percentages rounded to 2 decimal places

%

enter the return on assets for Cheyenne Corp in percentages rounded to 2 decimal places

%
(2)

Profit margin

enter the profit margin for Concord Corp in percentages rounded to 2 decimal places

%

enter the profit margin for Cheyenne Corp in percentages rounded to 2 decimal places

%
(3)

Asset turnover

enter the asset turnover for Concord Corp rounded to 2 decimal places

times

enter the asset turnover for Cheyenne Corp rounded to 2 decimal places

times

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