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Allied Construction and Axis Construction reported the following information in their annual financial statements ($ in millions):   Allied Construction 2021 2020 Sales $ 50,000   $ 45,000   Net income   3,900     4,000   Total assets   26,000     24,000       Axis Construction 2021 2020 Sales $ 87,000   $ 72,000   Net income   3,400     4,100   Total assets   53,000     64,000       Required: 1. Calculate Allied Construction's return on assets, profit margin, and asset turnover ratio for 2021. (Do not round your intermediate calculations. Round your answers to 2 decimal places.)   1-return on assets: _____% 2- profit margin: ________% 3-asset turnover: _____times   2. Calculate Axis Construction's return on assets, profit margin, and asset turnover ratio for 2021. (Do not round your intermediate calculations. Round your answers to 2 decimal places.)   1-return on assets: _____% 2- profit margin: ________% 3-asset turnover: _____times   3-a. Which company has the better profit margin?   multiple choice 1 Allied Axis     3-b. Which company has the better asset turnover?   multiple choice 2 Axis Allied

Allied Construction and Axis Construction reported the following information in their annual financial statements ($ in millions):   Allied Construction 2021 2020 Sales $ 50,000   $ 45,000   Net income   3,900     4,000   Total assets   26,000     24,000       Axis Construction 2021 2020 Sales $ 87,000   $ 72,000   Net income   3,400     4,100   Total assets   53,000     64,000       Required: 1. Calculate Allied Construction's return on assets, profit margin, and asset turnover ratio for 2021. (Do not round your intermediate calculations. Round your answers to 2 decimal places.)   1-return on assets: _____% 2- profit margin: ________% 3-asset turnover: _____times   2. Calculate Axis Construction's return on assets, profit margin, and asset turnover ratio for 2021. (Do not round your intermediate calculations. Round your answers to 2 decimal places.)   1-return on assets: _____% 2- profit margin: ________% 3-asset turnover: _____times   3-a. Which company has the better profit margin?   multiple choice 1 Allied Axis     3-b. Which company has the better asset turnover?   multiple choice 2 Axis Allied

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Allied Construction and Axis Construction reported the following information in their annual financial statements ($ in millions):

 

Allied Construction 2021 2020
Sales $ 50,000   $ 45,000  
Net income   3,900     4,000  
Total assets   26,000     24,000  
 

 

Axis Construction 2021 2020
Sales $ 87,000   $ 72,000  
Net income   3,400     4,100  
Total assets   53,000     64,000  
 

 

Required:

1. Calculate Allied Construction's return on assets, profit margin, and asset turnover ratio for 2021. (Do not round your intermediate calculations. Round your answers to 2 decimal places.)

 

1-return on assets: _____%

2- profit margin: ________%

3-asset turnover: _____times

 

2. Calculate Axis Construction's return on assets, profit margin, and asset turnover ratio for 2021. (Do not round your intermediate calculations. Round your answers to 2 decimal places.)

 

1-return on assets: _____%

2- profit margin: ________%

3-asset turnover: _____times

 

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

 

multiple choice 1

  • Allied
  • Axis

 

 

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

 

multiple choice 2

  • Axis
  • Allied

 

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