Cullumber Limited competes in the fast food industry with Bramble Limited. Cullumber underwent a major expansion in 2021, borrowing a large amount of money and acquiring a small competitor. The acquisition doubled the number of restaurants that Cullumber has. Bramble, on the other hand, took a more conservative approach and did not buy any new assets, focusing instead on making existing operations more efficient. Data for the two companies are provided below (in thousands of dollars): Cullumber Total assets Sales Net income 2021 $1,850 3,161 361 2020 $1,099 1,490 144 2019 $1,070 1,600 140
Cullumber Limited competes in the fast food industry with Bramble Limited. Cullumber underwent a major expansion in 2021, borrowing a large amount of money and acquiring a small competitor. The acquisition doubled the number of restaurants that Cullumber has. Bramble, on the other hand, took a more conservative approach and did not buy any new assets, focusing instead on making existing operations more efficient. Data for the two companies are provided below (in thousands of dollars): Cullumber Total assets Sales Net income 2021 $1,850 3,161 361 2020 $1,099 1,490 144 2019 $1,070 1,600 140
Chapter7: Valuation Of Stocks And Corporations
Section: Chapter Questions
Problem 1aM
Related questions
Question
![Cullumber Limited competes in the fast food industry with Bramble Limited. Cullumber underwent a major expansion in 2021,
borrowing a large amount of money and acquiring a small competitor. The acquisition doubled the number of restaurants that
Cullumber has. Bramble, on the other hand, took a more conservative approach and did not buy any new assets, focusing instead on
making existing operations more efficient.
Data for the two companies are provided below (in thousands of dollars):
Cullumber
Total assets
Sales
Net income
Bramble
Total assets
Sales
Net income
2021
$1,850
3,161
361
807
1,822
190
2020
$1,099 $1,070
1,490
144
880
1,671
2019
205
1,600
140
1,070
2,000
210](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe9388abc-2700-4cb9-af36-e9cfdc2f8c09%2F95c27bca-af4f-4928-b27c-7a61fb2df04d%2Fdy0e1yg_processed.png&w=3840&q=75)
Transcribed Image Text:Cullumber Limited competes in the fast food industry with Bramble Limited. Cullumber underwent a major expansion in 2021,
borrowing a large amount of money and acquiring a small competitor. The acquisition doubled the number of restaurants that
Cullumber has. Bramble, on the other hand, took a more conservative approach and did not buy any new assets, focusing instead on
making existing operations more efficient.
Data for the two companies are provided below (in thousands of dollars):
Cullumber
Total assets
Sales
Net income
Bramble
Total assets
Sales
Net income
2021
$1,850
3,161
361
807
1,822
190
2020
$1,099 $1,070
1,490
144
880
1,671
2019
205
1,600
140
1,070
2,000
210
![Calculate the (1) profit margin, (2) asset turnover, and (3) return on asset ratios for each company in 2020 and 2021. (Round answers to
1 decimal place, e.g. 5.2% or 5.2.)
(1)
(2)
Profit margin
Asset turnover
(3) Return on assets
2020
%
Cullumber
times
%
2021
%
times
%
2020](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe9388abc-2700-4cb9-af36-e9cfdc2f8c09%2F95c27bca-af4f-4928-b27c-7a61fb2df04d%2F2019ujk_processed.png&w=3840&q=75)
Transcribed Image Text:Calculate the (1) profit margin, (2) asset turnover, and (3) return on asset ratios for each company in 2020 and 2021. (Round answers to
1 decimal place, e.g. 5.2% or 5.2.)
(1)
(2)
Profit margin
Asset turnover
(3) Return on assets
2020
%
Cullumber
times
%
2021
%
times
%
2020
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