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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

Auditing: A Risk Based-Approach (MindTap Course List)
Auditing: A Risk Based-Approach (MindTap Course List)
11th Edition
ISBN:9781337619455
Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Chapter12: Auditing Long-lived Assets And Merger And Acquisition Activity
Section: Chapter Questions
Problem 28RQSC
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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
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
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