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 IncomeTotal AssetsTotal LiabilitiesTotal RevenuesExpeditions Incorporated$ 1,180$ 9,250$ 6,600$ 6,730BookItNow3,2208,7304,4707,960 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?

Name: Expeditions Incorporated and BookItNow compete as online travel agenci
Uploaded: 2024-03-04T10:43:15.000Z
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Description: 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 IncomeTotal AssetsTotal LiabilitiesTotal RevenuesExpeditions

Profitability ratios are very important because they are used to measure the profitability of a project, investment, or division. Profits are very important because an entity cannot imagine existing in the long run without making a profit. Profit is the main objective of the entity. Computing net profit margin: Expedition incorporated BookltNowNet income $ 1,180,000,000.00 $ 3,220,000,000.00Revenues $ 6,730,000,000.00 $ 7,960,000,000.00Net profit margin (percentage) 17.53%40.45%Reference:Formula:The net profit margin is higher for the company Bookltnow which means it is generating more profit from each dollar of revenue. Expedition incorporated BookltNow Net profit margin (percentage) 17.53%40.45%Cmpany Bookltnow is generating more profit from each dollar of revenue.

Answered: xpeditions Incorporated and BookItNow…

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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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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