Two brewing companies that compete against each other are Northern Ale Ltd. (NAL) and Brew Right Inc. (BRI). The industry is experiencing a slump and each company has undertaken a different strategy to adapt to this situation. NAL has adopted an expansion strategy by borrowing funds to purchase another company. This has boosted 2018 sales by 67% and 2018 net income by 47%, which the company CEO has mentioned in several press releases. BRI has decided to streamline operations and cut costs by looking at more efficient ways to operate the business.
Data for the two companies are listed below (in thousands of dollars):

Instructions
(a) Calculate the net income margin, asset turnover, and return on assets ratios for each company in 2017 and 2018.
(b) Provide an explanation for the year-over-year changes in the ratios calculated in part P9.12B(a).
(c) Comment on which company has been more successful in executing its strategy.

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2018 2017 2016 Northern Ale Total assets $2,500 $1,10o $1,000 Net sales Net income Brew Right Total assets 1,100 1,050 1,000 Net sales Net income 2,500 1,500 1,600 220 15016o 1,800 1,500 1,400 250 150 140