2. The following information is available for Company A and B engaged in selling the same sort of product in similar market. Capital employed Net profit Gross profit ratio Net profit ratio Return on capital employed Required: Comment on the profitability of the company A and B. Company A RM'000 10,000 10,000 25% 10% 100% Company B RM'000 100,000 10,000 28% 14% 10%
2. The following information is available for Company A and B engaged in selling the same sort of product in similar market. Capital employed Net profit Gross profit ratio Net profit ratio Return on capital employed Required: Comment on the profitability of the company A and B. Company A RM'000 10,000 10,000 25% 10% 100% Company B RM'000 100,000 10,000 28% 14% 10%
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:2.
The following information is available for Company A and B engaged in selling the same
sort of product in similar market.
Capital employed
Net profit
Gross profit ratio
Net profit ratio
Return on capital employed
Required:
Comment on the profitability of the company A and B.
Company A
RM'000
10,000
10,000
25%
10%
100%
Company B
RM'000
100,000
10,000
28%
14%
10%
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