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?
Financial Accounting
14th Edition
ISBN:9781305088436
Author:Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:Carl Warren, Jim Reeve, Jonathan Duchac
Chapter1: Introduction To Accounting And Business
Section: Chapter Questions
Problem 27E: Lowes Companies Inc., a major competitor of The Home Depot in the home improvement business,...
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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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