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P9.13A (LO 7) AN Andruski Company and Brar Company both manufacture school science equipment. The following financial information is for three years ended December 31
P9.13A (LO 7) AN Andruski Company and Brar Company both manufacture school science equipment. The following financial information is for three years ended December 31 (in thousands): Andruski Company 2021 2020 2019 Net sales Profit Total assets $ 552.0 21.4 702.5 $ 515.9 20.6 662.8 $ 469.0 18.7 602.5 2021 2020 2019 Brar Company Net sales Profit Total assets $1,762.9 96.5 1,523.5 $1,588.2 85.4 1,410.7 $1,484.3 79.8 1,318.4 Instructions a. Calculate the asset turnover and return on assets ratios for both companies for 2020 and 2021. Round your answers to two decimal points. b. Comment on how effective each of the companies is at using its assets to generate sales and produce profit. Taking It Further After reading the notes to the financial statements, you have determined that Andruski Company uses diminishing-balance depreciation and Brar uses straight-line. Does this affect your ability to compare these two companies
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