As consultants in advisory services, we are hired by Sayko Corp to help analyze its regional operations in the contiguous U.S. Sayko wishes to draw on our expertise in financial statement analysis to help identify further expansion of operations.   Please complete the following based on the information on the map (image): 1. Compute profit margin for each region. 2. The company asks us which region it should focus on if it wishes to get the largest net income from each dollar of sales. If we use profit margin to guide our recommendation, which region do we suggest? 3. Compute return on total assets for each region.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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As consultants in advisory services, we are hired by Sayko Corp to help analyze its regional operations in the contiguous U.S. Sayko wishes to draw on our expertise in financial statement analysis to help identify further expansion of operations.

 

Please complete the following based on the information on the map (image):

1. Compute profit margin for each region.
2. The company asks us which region it should focus on if it wishes to get the largest net income from each dollar of sales. If we use profit margin to guide our recommendation, which region do we suggest?
3. Compute return on total assets for each region.
4. The company asks us which region it should focus on if it wishes to get the largest net income from each dollar of assets invested. If we use return on total assets to make our decision, which region do we recommend?

West
Southv
Me
Midwest
Southwest
Net Sales:
Net Income:
Southeast
Northeast
$80,000
$17,600
Average Total Assets: $176,000
Current Liabilities:
$64,000
Transcribed Image Text:West Southv Me Midwest Southwest Net Sales: Net Income: Southeast Northeast $80,000 $17,600 Average Total Assets: $176,000 Current Liabilities: $64,000
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