Item17

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Item 17

Papas Pizza is the market leader and Pizza Prince is an up-and-coming player in the highly competitive delivery pizza business. The companies reported the following selected financial data ($ in thousands):

	Papas Pizza	Pizza Prince
Net sales	$25,628	$3,335
Net income	3,723	279
Total assets, beginning	16,498	1,069
Total assets, ending	16,965	2,657

Required:

1. Calculate the return on assets, profit margin, and asset turnover ratio for Papas Pizza. 2. Calculate the return on assets, profit margin, and asset turnover ratio for Pizza Prince. 3-a. Which company has the more favorable profit margin? 3-b. Which company has the more favorable asset turnover?