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The 2019 financial statements of Companies A and B show the following data: Item Company A Company B Net Sales Revenue $150,000 $200,000 Net Profit

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The 2019 financial statements of Companies A and B show the following data: Item Company A Company B Net Sales Revenue $150,000 $200,000 Net Profit Margin 6% 5% Average Total Assets $40,000 $80,000 Financial Leverage 3% Percentage Interest Expense (Net of $1,000 S800 taxes) 4% Defined as Return on Equity-Return on Assets Required: 1. For each company, compute the following: (8 marks available) Company A Company B Item Net Income Return on Equity Return on Assets Average Owners' Equity 2. Assuming both Company A and Company B are in the same industry, which of the two appears to be a better investment and why? (4 marks available) (Note do not put your answers here - Put your answer in the Word document provided)

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