Blythe Corporation and Jacke 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 approac An investigation of their financial statements reveals the information shown below. Net income Sales revenue Total assets (average) Plant assets (average) Intangible assets (goodwill) Blythe Corp. $ 240,000 1,150,000 3,200,000 2,400,000 300,000 Jacke Corp. $ 300,000 1,200,000 3,000,000 1,800,000 0 (a) For each company, calculate these values: (Round answers to 2 decimal places, e.g. 6.25% or 17.54.)
Blythe Corporation and Jacke 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 approac An investigation of their financial statements reveals the information shown below. Net income Sales revenue Total assets (average) Plant assets (average) Intangible assets (goodwill) Blythe Corp. $ 240,000 1,150,000 3,200,000 2,400,000 300,000 Jacke Corp. $ 300,000 1,200,000 3,000,000 1,800,000 0 (a) For each company, calculate these values: (Round answers to 2 decimal places, e.g. 6.25% or 17.54.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Subject - account
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Transcribed Image Text:Blythe Corporation and Jacke 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)
(1)
(2)
(3)
Return on assets
Blythe Corp. Jacke Corp.
$ 240,000
$ 300,000
1,150,000
1,200,000
3,000,000
1,800,000
Profit margin
Asset turnover
3,200,000
For each company, calculate these values: (Round answers to 2 decimal places, e.g. 6.25% or 17.54.)
2,400,000
300,000
Blythe Corp.
7.50 %
20.87 %
.36
0
times
Jacke Corp.
10.00 %
25.00 %
.40
times
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