Answered: BloBeans GreenKale Average total…

Business

Accounting

BloBeans GreenKale Average total assets... Net sales.... $187,500 $150,000 75,000 60,000 Net income 15,000 9,000

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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Question

Following are data for BioBeans and GreenKale, which sell organic produce and are of similar size.
1. Compute the profit margin and the return on total assets for both companies.
2. Based on analysis of these two measures, which company is the preferred investment?

BloBeans
GreenKale
Average total assets...
Net sales....
$187,500
$150,000
75,000
60,000
Net income
15,000
9,000

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