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
![](/static/compass_v2/shared-icons/check-mark.png)
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
![Horngren's Cost Accounting: A Managerial Emphasis…](https://www.bartleby.com/isbn_cover_images/9780134475585/9780134475585_smallCoverImage.gif)
![Intermediate Accounting](https://www.bartleby.com/isbn_cover_images/9781259722660/9781259722660_smallCoverImage.gif)
![Financial and Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781259726705/9781259726705_smallCoverImage.gif)