As consultants in advisory services, we are hired by Sayko Corp to help analyze its regional operations in the contiguous U.S. Sayko wishes to draw on our expertise in financial statement analysis to help identify further expansion of operations. Use the table below with information about each region to answer the following questions: 2. The company asks us which region it should focus on if it wishes to get the largest net income from each dollar of sales. If we use profit margin to guide our recommendation, which region do we suggest? 4. The company asks us which region it should focus on if it wishes to get the largest net income from each dollar of assets invested. If we use return on total assets to make our decision, which region do we recommend?
As consultants in advisory services, we are hired by Sayko Corp to help analyze its regional operations in the contiguous U.S. Sayko wishes to draw on our expertise in financial statement analysis to help identify further expansion of operations.
Use the table below with information about each region to answer the following questions:
2. The company asks us which region it should focus on if it wishes to get the largest net income from each dollar of sales. If we use profit margin to guide our recommendation, which region do we suggest?
4. The company asks us which region it should focus on if it wishes to get the largest net income from each dollar of assets invested. If we use return on total assets to make our decision, which region do we recommend?
| Northeast | Southeast | Midwest | Southwest | West | |
| Net Sales | 52,000 | $65,000 | $15,000 | $80,000 | $110,000 |
| Net Income | 9,360 | $4,550 | $1,800 | $17,600 | $22,000 |
| Average Total Assets | 78,000 | $35,000 | $20,000 | $176,000 | $137,500 |
| Current Liabilities | 21,000 | $8,000 | $2,900 | $64,000 | $70,000 |
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