Papa's Pizza is the market leader and Pizza Prince is an up-and-coming player in the highly competitive delivery pizza business. The companies reported the following selected financial data ($ in thousands): Net sales Net income Total assets, beginning. Total assets, ending Required: 1. Calculate the return on assets, profit margin, and asset turnover ratio for Papa's Pizza. 2. Calculate the return on assets, profit margin, and asset turnover ratio for Pizza Prince. Req 1 3-a. Which company has the more favorable profit margin? 3-b. Which company has the more favorable asset turnover? Complete this question by entering your answers in the tabs below. Reg 2 Choose Numerator Net income Choose Numerator Net income Calculate the return on assets, profit margin, and asset turnover ratio for Papa's Pizza. (Enter your answers in thousands of dollars (i.e. 123,000 should be entered as 123). Enter average total assets to 1 decimal place.) W Choose Numerator + + Papa's Pizza $24, 128 2,223 + S 14,998 15,465 + Pizza Prince $1,835 129 919 1,157 + Reg 3A Reg 3B Return on Assets Choose Denominator Average total assets. Profit Margin Choose Denominator Asset Turnover Choose Denominator = E = = = = Return on Assets Return on Assets Profit Margin Profit Margin Asset Turnover 0 0
Papa's Pizza is the market leader and Pizza Prince is an up-and-coming player in the highly competitive delivery pizza business. The companies reported the following selected financial data ($ in thousands): Net sales Net income Total assets, beginning. Total assets, ending Required: 1. Calculate the return on assets, profit margin, and asset turnover ratio for Papa's Pizza. 2. Calculate the return on assets, profit margin, and asset turnover ratio for Pizza Prince. Req 1 3-a. Which company has the more favorable profit margin? 3-b. Which company has the more favorable asset turnover? Complete this question by entering your answers in the tabs below. Reg 2 Choose Numerator Net income Choose Numerator Net income Calculate the return on assets, profit margin, and asset turnover ratio for Papa's Pizza. (Enter your answers in thousands of dollars (i.e. 123,000 should be entered as 123). Enter average total assets to 1 decimal place.) W Choose Numerator + + Papa's Pizza $24, 128 2,223 + S 14,998 15,465 + Pizza Prince $1,835 129 919 1,157 + Reg 3A Reg 3B Return on Assets Choose Denominator Average total assets. Profit Margin Choose Denominator Asset Turnover Choose Denominator = E = = = = Return on Assets Return on Assets Profit Margin Profit Margin Asset Turnover 0 0
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
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Transcribed Image Text:Papa's Pizza is the market leader and Pizza Prince is an up-and-coming player in the highly competitive delivery pizza business. The
companies reported the following selected financial data ($ in thousands):
Net sales
Net income
Total assets, beginning
Total assets, ending
Required:
1. Calculate the return on assets, profit margin, and asset turnover ratio for Papa's Pizza.
2. Calculate the return on assets, profit margin, and asset turnover ratio for Pizza Prince.
Req 1
3-a. Which company has the more favorable profit margin?
3-b. Which company has the more favorable asset turnover?
Complete this question by entering your answers in the tabs below.
Reg 2
Choose Numerator
Net income
Choose Numerator
Net income
Calculate the return on assets, profit margin, and asset turnover ratio for Papa's Pizza. (Enter your answers in thousands of
dollars (i.e. 123,000 should be entered as 123). Enter average total assets to 1 decimal place.)
Ws
Choose Numerator
#
4
Papa's Pizza
$24,128
2,223
14,998
15,465
+
-
Pizza Prince
$1,835
+
+
Reg 3A
Req 3B
129
919
1,157
Return on Assets
Choose Denominator
Average total assets
Profit Margin
Choose Denominator
Asset Turnover
Choose Denominator
Y
=
=
=
=
=
=
Return on Assets
Return on Assets
Profit Margin
Profit Margin
Asset Turnover
Annet TUERQUE
0
0
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