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Crane Limited competes in the fast food industry with Pronghorn Limited. Crane underwent a major expansion in 2021, borrowing a large amount of money
Crane Limited competes in the fast food industry with Pronghorn Limited. Crane underwent a major expansion in 2021, borrowing a large amount of money and acquiring a small competitor. The acquisition doubled the number of restaurants that Crane has. Pronghorn, on the other hand, took a more conservative approach and did not buy any new assets, focusing instead on making existing operations more efficient. Data for the two companies are provided below (in thousands of dollars): 2021 2020 2019 Crane Total assets $2,050 $1,138 $1,010 Sales 3,221 1,490 1,600 Net income 363 158 140 Pronghorn Total assets 837 872 1,010 Sales 2,068 1,795 2,000 Net income 190 210 210
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