xpeditions Incorporated and BookItNow compete as online travel agencies. The following amounts were reported by the two companies in the three months ended June 30, 2019. (in millions) Net Income Total Assets Total Liabilities Total Revenues Expeditions Incorporated $ 1,180 $ 9,250 $ 6,600 $ 6,730 BookItNow 3,220 8,730 4,470 7,960 Required: Calculate each company’s net profit margin expressed as a percent. Which company has generated a greater return of profit from each revenue dollar?
xpeditions Incorporated and BookItNow compete as online travel agencies. The following amounts were reported by the two companies in the three months ended June 30, 2019. (in millions) Net Income Total Assets Total Liabilities Total Revenues Expeditions Incorporated $ 1,180 $ 9,250 $ 6,600 $ 6,730 BookItNow 3,220 8,730 4,470 7,960 Required: Calculate each company’s net profit margin expressed as a percent. Which company has generated a greater return of profit from each revenue dollar?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Expeditions Incorporated and BookItNow compete as online travel agencies. The following amounts were reported by the two companies in the three months ended June 30, 2019.
| (in millions) | Net Income | Total Assets | Total Liabilities | Total Revenues |
|---|---|---|---|---|
| Expeditions Incorporated | $ 1,180 | $ 9,250 | $ 6,600 | $ 6,730 |
| BookItNow | 3,220 | 8,730 | 4,470 | 7,960 |
Required:
-
Calculate each company’s net profit margin expressed as a percent.
-
Which company has generated a greater return of profit from each revenue dollar?
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