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Danner Corporation and London Corporation, two companies of roughly the same size, are both involved in the manufacture of shoe-tracing devices. Each company depreciates its
Danner Corporation and London 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.
Danner Corp. | London Corp. | |||
Net income | $ 245,600 | $ 315,800 | ||
Sales revenue | 1,915,400 | 1,991,400 | ||
Total assets (average) | 3,686,000 | 3,437,900 | ||
Plant assets (average) | 2,788,200 | 1,841,300 | ||
Intangible assets (goodwill) | 371,300 |
For each company find the return on assets, profit margin and asset turnover. |
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