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Wildhorse Limited competes in the fast food industry with Novak Limited. Wildhorse underwent a major expansion in 2021, borrowing a large amount of money and

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Wildhorse Limited competes in the fast food industry with Novak Limited. Wildhorse underwent a major expansion in 2021, borrowing a large amount of money and acquiring a small competitor. The acquisition doubled the number of restaurants that Wildhorse has. Novak, on the other hand, took a more conservative approach and did not buy any new assets, focusing instead on making existing operations more efficient. Data for the two companies are provided below (in thousands of dollars): 2021 2020 2019 Wildhorse Total assets $1.800 $1,064 $1,070 3.151 1.430 1.600 326 158 140 Sales Net income Novak Total assets Sales Net income 874 970 1,070 1,607 2,000 1.721 175 188 210 (a) Calculate the (1) profit margin, (2) asset turnover, and (3) return on asset ratios for each company in 2020 and 2021. (Round answers to 1 decimal place, e.g. 5.2% or 5.2.) Wildhorse 2020 2021 2020 (1) Profit margin %6 (2) Asset turnover times times (3) Return on assets % %

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