[The following information applies to the questions displayed below.]

Sub Station and Planet Sub reported the following selected financial data ($ in thousands). Sub Stations business strategy is to sell the best tasting sandwich with the highest quality ingredients. Planet Subs business strategy is to sell the lowest cost sub on the planet.

Required:

1. Calculate Sub Stations return on assets, profit margin, and asset turnover ratio. (Enter your answers in thousands of dollars. (i.e. 123,000 should be entered as 123).)

2. Calculate Planet Sub's return on assets, profit margin, and asset turnover ratio. (Enter your answers in thousands of dollars. (i.e. 123,000 should be entered as 123).)

3-a. Which company has the higher profit margin?

	Sub Stations
	Planet Sub

3-b. Which company has the higher asset turnover?

	Sub Stations
	Planet Sub

3-c. Are the two ratios consistent with the primary business strategies of the two companies?

	Yes
	No

Sub Station Planet Sub Net sales Net income Total assets, beginning Total assets, ending $108,449 26,122 75,383 116,771 $62,271 3,692 38,799 44,933