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I am attaching the question. Having trouble understanding accounting. Problem 9-6A Danner Corporation and London Corporation, two companies of roughly the same size, are both
I am attaching the question. Having trouble understanding accounting.
Problem 9-6A 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. Net income Sales revenue Total assets (average) Plant assets (average) Intangible assets (goodwill) London Corp. $ 255,900 1,755,800 3,457,400 2,601,600 467,500 $ 331,700 1,822,200 3,227,400 1,896,500 0 (a) For each company, calculate these values: (Round answers to 2 decimal places, e.g. 6.25% or 17.54.) Danner Corp. London Corp. (1) Return on assets. % % (2) Profit margin. % % (3) Asset turnover. time s time sStep by Step Solution
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