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Following are data for BioBeans and GreenKale, which sell organic produce and are of similar size. BioBeans Average total assets Net sales $ 217,500
Following are data for BioBeans and GreenKale, which sell organic produce and are of similar size. BioBeans Average total assets Net sales $ 217,500 110,000 15,225 GreenKale $ 168,000 84,000 6,000 Net income 1a. Compute the profit margin for both companies. 1b. Compute the return on total assets for both companies. 2. Based on analysis of these two measures, which company is the preferred investment? Complete this question by entering your answers in the tabs below. Required 1A Required 1B Required 2 Compute the profit margin for both companies. BioBeans GreenKale Numerator: Required 1A Required 1B Required 2 Profit margin Denominator: = Profit margin ratio = Profit margin ratio 1 = % = % Required 1A Required 1B > Compute the return on total assets for both companies. BioBeans GreenKale Return on total assets Numerator: / Denominator: = Return on total assets || = Return on total assets 1 1 = % = % < Required 1A Required 1A Required 1B Required 2 Required 2 > Based on analysis of these two measures, which company is the preferred investment? Preferred investment company is
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