Allied Construction and Axis Construction reported the following information in their annual financial statements ($ in millions): Allied Construction 2021 2020 Sales $ 50,000 $ 45,000 Net income 3,900 4,000 Total assets 26,000 24,000 Axis Construction 2021 2020 Sales $ 87,000 $ 72,000 Net income 3,400 4,100 Total assets 53,000 64,000 Required: 1. Calculate Allied Construction's return on assets, profit margin, and asset turnover ratio for 2021. (Do not round your intermediate calculations. Round your answers to 2 decimal places.) 1-return on assets: _____% 2- profit margin: ________% 3-asset turnover: _____times 2. Calculate Axis Construction's return on assets, profit margin, and asset turnover ratio for 2021. (Do not round your intermediate calculations. Round your answers to 2 decimal places.) 1-return on assets: _____% 2- profit margin: ________% 3-asset turnover: _____times 3-a. Which company has the better profit margin? multiple choice 1 Allied Axis 3-b. Which company has the better asset turnover? multiple choice 2 Axis Allied
Allied Construction and Axis Construction reported the following information in their annual financial statements ($ in millions): Allied Construction 2021 2020 Sales $ 50,000 $ 45,000 Net income 3,900 4,000 Total assets 26,000 24,000 Axis Construction 2021 2020 Sales $ 87,000 $ 72,000 Net income 3,400 4,100 Total assets 53,000 64,000 Required: 1. Calculate Allied Construction's return on assets, profit margin, and asset turnover ratio for 2021. (Do not round your intermediate calculations. Round your answers to 2 decimal places.) 1-return on assets: _____% 2- profit margin: ________% 3-asset turnover: _____times 2. Calculate Axis Construction's return on assets, profit margin, and asset turnover ratio for 2021. (Do not round your intermediate calculations. Round your answers to 2 decimal places.) 1-return on assets: _____% 2- profit margin: ________% 3-asset turnover: _____times 3-a. Which company has the better profit margin? multiple choice 1 Allied Axis 3-b. Which company has the better asset turnover? multiple choice 2 Axis Allied
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 52E: Juroe Company provided the following income statement for last year: Juroes balance sheet as of...
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Allied Construction and Axis Construction reported the following information in their annual financial statements ($ in millions):
| Allied Construction | 2021 | 2020 | ||||
| Sales | $ | 50,000 | $ | 45,000 | ||
| Net income | 3,900 | 4,000 | ||||
| Total assets | 26,000 | 24,000 | ||||
| Axis Construction | 2021 | 2020 | ||||
| Sales | $ | 87,000 | $ | 72,000 | ||
| Net income | 3,400 | 4,100 | ||||
| Total assets | 53,000 | 64,000 | ||||
Required:
1. Calculate Allied Construction's return on assets, profit margin, and asset turnover ratio for 2021. (Do not round your intermediate calculations. Round your answers to 2 decimal places.)
1-return on assets: _____%
2- profit margin: ________%
3-asset turnover: _____times
2. Calculate Axis Construction's return on assets, profit margin, and asset turnover ratio for 2021. (Do not round your intermediate calculations. Round your answers to 2 decimal places.)
1-return on assets: _____%
2- profit margin: ________%
3-asset turnover: _____times
3-a. Which company has the better profit margin?
multiple choice 1
-
Allied
-
Axis
3-b. Which company has the better asset turnover?
multiple choice 2
-
Axis
-
Allied
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