The following amounts were reported by the two companies: Raiden Inc. Nash Company Net Income $42,000 $55,000 Total Assets $75,000 $94,000 Total Liabilities $40,000 $60,000 Total Revenues $120,000 $137,500 Required: 1. Calculate each company's net profit margin expressed as a percent. 2.Which company has generated a greater return of profit from each revenue dollar? State the basis for your answer.
The following amounts were reported by the two companies: Raiden Inc. Nash Company Net Income $42,000 $55,000 Total Assets $75,000 $94,000 Total Liabilities $40,000 $60,000 Total Revenues $120,000 $137,500 Required: 1. Calculate each company's net profit margin expressed as a percent. 2.Which company has generated a greater return of profit from each revenue dollar? State the basis for your answer.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:The following amounts were reported by the
two companies:
Raiden Inc. Nash Company
Net Income
$42,000
$55,000
Total Assets
$75,000
$94,000
Total Liabilities $40,000
$60,000
Total Revenues $120,000
$137,500
Required:
1. Calculate each company's net profit margin
expressed as a percent.
2.Which company has generated a greater
return of profit from each revenue dollar?
State the basis for your answer.
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