Blue Corporation and Swifty Corporation, two companies of roughly the same size, are both involved in the manufacture of shoe-tracing devices. Each company depreciates its plant assets using the straight-line approach. An investigation of their financial statements reveals the information shown below. Net income Sales revenue Total assets (average) Plant assets (average) Intangible assets (goodwill) (a) Blue Corp. $245,420 1,753,000 3,506,000 2,880,000 432,100 Swifty Corp. $ 330,600 2,066,250 2,755,000 1,826,000 0 Blue Corporation and Swifty Corporation, two companies of roughly the same size, are both involved in the manufacture of shoe-tracing devices. Each company depreciates its plant assets using the straight-line approach. An investigation of their financial statements reveals the information shown below. Show Transcribed Text (1) Net income Sales revenue Total assets (average) Plant assets (average) Intangible assets (goodwill) (a) (2) (3) ****** For each company, calculate these values: (Round return on assets and propt margin to 1 decimal place, e.g. 6.2% and asset turnover to 2 decimal places, e.g. 17.54.) Return on assets Profit margin Blue Corp. Swifty Corp. $245,420 $330,600 1,753,000 2,066,250 3,506,000 2.755,000 2,880,000 1,826,000 Asset turnover 432.100 Blue Corp 0 % times Swifty Corp. % times
Blue Corporation and Swifty Corporation, two companies of roughly the same size, are both involved in the manufacture of shoe-tracing devices. Each company depreciates its plant assets using the straight-line approach. An investigation of their financial statements reveals the information shown below. Net income Sales revenue Total assets (average) Plant assets (average) Intangible assets (goodwill) (a) Blue Corp. $245,420 1,753,000 3,506,000 2,880,000 432,100 Swifty Corp. $ 330,600 2,066,250 2,755,000 1,826,000 0 Blue Corporation and Swifty Corporation, two companies of roughly the same size, are both involved in the manufacture of shoe-tracing devices. Each company depreciates its plant assets using the straight-line approach. An investigation of their financial statements reveals the information shown below. Show Transcribed Text (1) Net income Sales revenue Total assets (average) Plant assets (average) Intangible assets (goodwill) (a) (2) (3) ****** For each company, calculate these values: (Round return on assets and propt margin to 1 decimal place, e.g. 6.2% and asset turnover to 2 decimal places, e.g. 17.54.) Return on assets Profit margin Blue Corp. Swifty Corp. $245,420 $330,600 1,753,000 2,066,250 3,506,000 2.755,000 2,880,000 1,826,000 Asset turnover 432.100 Blue Corp 0 % times Swifty Corp. % times
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:Blue Corporation and Swifty Corporation, two companies of roughly the same size, are both involved in the manufacture of shoe-tracing
devices. Each company depreciates its plant assets using the straight-line approach. An investigation of their financial statements reveals
the information shown below. Net income Sales revenue Total assets (average) Plant assets (average) Intangible assets (goodwill) (a) Blue
Corp. $245,420 1,753,000 3,506,000 2,880,000 432,100 Swifty Corp. $ 330,600 2,066,250 2,755,000 1,826,000 0
(1)
Show Transcribed Text
(2)
Blue Corporation and Swifty Corporation, two companies of roughly the same size, are both involved in the
manufacture of shoe-tracing devices. Each company depreciates its plant assets using the straight-line approach. An
investigation of their financial statements reveals the information shown below.
Net income
Sales revenue
Total assets (average)
Plant assets (average)
Intangible assets (goodwill)
(a)
(3)
Return on assets
Profit margin
Asset turnover
3
432.100
For each company, calculate these values: (Round return on assets and profit margin to 1 decimal place, e.g.
6.2 % and asset turnover to 2 decimal places, e.g. 17.54.)
Blue Corp. Swifty Corp.
$245,420
$330,600
1,753,000
2,066,250
3,506,000
2.755,000
2,880,000
1,826,000
Blue Corp.
3
C
%
%
0
C
times
Swifty Corp.
%
%
times
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education