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Pharoah Mart and Sheridan Shop are two companies of roughly the same size both running a chain of convenience stores. Each company depreciates its plant
Pharoah Mart and Sheridan Shop are two companies of roughly the same size both running a chain of convenience stores. Each company depreciates its plant assets using the straight-line method. An investigation of their financial statements reveals the following information:
Pharoah Mart | Sheridan Shop | |||
---|---|---|---|---|
Net income | $113,274 | $117,100 | ||
Sales revenue | 801,000 | 990,000 | ||
Total assets (average) | 3,906,000 | 4,941,000 | ||
Plant assets (average) | 1,485,000 | 1,710,000 |
For each company, calculate: (Round answers to 2 decimal places, e.g. 52.75.)
Pharoah Mart | Sheridan Shop | ||||||
---|---|---|---|---|---|---|---|
A. | Return on assets | enter percentages | % | enter percentages | % | ||
B. | Asset turnover | enter ratio | enter ratio |
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