Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Cullumber Limited competes in the fast food industry with Bramble Limited. Cullumber underwent a major expansion in 2021, borrowing a large amount of money and

Cullumber Limited competes in the fast food industry with Bramble Limited. Cullumber 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 Cullumber has. Bramble, 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 Cullumber Total assets $1,850 $1,099 $1,070 Sales 3,161 1,490 1,600 Net income 361 144 140 Bramble Total assets 807 880 1,070 Sales 1,822 1,671 2,000 Net income 190 205 210 Calculate the (1) profit margin, (2) asset turnover, and (3) return on asset ratios for each company in 2020 and 2021. (Round answers to 1 decimal place, e.g. 5.2% or 5.2.) Cullumber 2021 2020 (1) Profit margin % (2) Asset turnover times (3) Return on assets % % times % 2020

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Budget Management Comprehensive Beginner S Guide To Budget Management

Authors: Steve Wilson

1091168881, 978-1091168886

More Books

Students also viewed these Accounting questions