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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.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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.
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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