QUESTION 2

Delta Inc. and Sigma Inc. are two identical corporations, trying to improve their profit performance. Below is some information refined from their financial statement.

Sales Net Profit Margin Assets Turnover Return on Asset Total Liabilities Total Asset Total Equity Financial Leverage Return on Equity Delta Inc. RM25,000,000 10% 1.25 times RM 1 0,000,000 Sigma Inc. RM20,000,000 10% 0.8 times RM 1 7,000,000