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Problem #4: Company A and Company B, two companies of approximately the same size and in same industry. Each company depreciates it plant assets (i.e.,

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Problem #4: Company A and Company B, two companies of approximately the same size and in same industry. Each company depreciates it plant assets (i.e., PPE) using the straight-line method. An investigation of their financial statements reveals the information shown below.: Company A Company B Net Income $ 240,000 $ 300,000 Sales revenue 1,150,000 1,200,000 Total assets (average) 3,200,000 3,000,000 Plant assets (average) 2,400,000 1,800,000 Intangible assets (goodwill) 300,000 Required: a. For each company, calculate these values: Company A Company B Return on assets Profit margin Asset turnover b. Based on your calculations in part (a), comment on the relative effectiveness of the two companies in using their assets to generate sales. What factors complicate your ability to compare the two companies

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