item/company A B Revenue 38.51% 14.23% net income 32.60% 1,596.39% net profit margin -4.26% 1,410.59% ROE 19% 8.6% Based on the information which company has the higher financial performance? state the reason

item/company A B Revenue 38.51% 14.23% net income 32.60% 1,596.39% net profit margin -4.26% 1,410.59% ROE 19% 8.6% Based on the information which company has the higher financial performance? state the reason

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter14: Corporation Accounting

Section: Chapter Questions

Problem 22MC: The measurement of earnings concept that consists of a companys profit from operations after taxed...

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Solvency and Profitability Trend Analysis Addai Company has provided the following comparative information: 20Y8 20Y7 20Y6 20Y5 20Y4 Net income $1,078,700 $929,900 $781,400 $667,900 $566,000 Interest expense 366,800 334,800 289,100 220,400 175,500 Income tax expense 345,184 260,372 218,792 173,654 135,840 Total assets (ending balance) 8,226,651 8,779,231 6,276,721 6,620,869 5,020,826 Total stockholders' equity (ending balance) 2,543,681 3,148,667 2,003,133 2,553,135 1,531,881 Average total assets 8,502,941 7,527,976 6,448,795 5,517,391 4,722,930 Average stockholders' equity 2,846,174 2,575,900 2,278,134 2,042,508 1,808,307 You have been asked to evaluate the historical performance of the company over the last five years. Selected industry ratios have remained relatively steady at the following levels for the last five years:…
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b. Assume that more than one product is being sold in each of the four following case situations:AverageContribution Net OperatingVariable Margin Fixed IncomeCase Sales Expenses Ratio Expenses (Loss)1 ........................ $500,000 ? 20% ? $7,0002 ........................ $400,000 $260,000 ? $100,000 ?3 ........................ ? ? 60% $130,000 $20,0004 ........................ $600,000 $420,000 ? ? $(5,000)
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