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Indigo Corporation and Blue Corporation, two companies of roughly the same size, are both involved in the manufacture of shoe- tracing devices. Each company depreciates

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Indigo Corporation and Blue 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. Indigo Corp. Blue Corp. Net income $ 246,750 $ 331,500 Sales revenue 1,762,500 2,071,875 Total assets (average) 3,525,000 3,453,125 Plant assets (average) 2,840,000 1,874,000 Intangible assets (goodwill) 365,100 0 For each company, calculate these values: (Round return on assets and profit margin to 1 decimal place, e8. 6.2% and asset turnover to 2 decimal places, e.g. 17.54.) Indigo Corp. Blue Corp. (1) Return on assets 07 % 096 % (2) Profit margin 14 % .16 %6 (3) (9 ) Asset turnover 714 times 62 times

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