11.Information is presented below for two companies:
(in thousands)LashannaCambrell
Operating revenues$4,500$1,800
Net income900180
Total assets6,0001,200
Required:
a.Compute profit margin, asset turnover, and return on assets for each firm.
b.Compare the operating strategies of both firms and explain which is doing a better job with its strategy.
12.Information is provided below for Cherokee Company:
(in thousands)20082007
Operating revenues$1,800$1,600
Cost of goods sold1,000930
Operating expenses270210
Net income310270
Total assets3,0002,000
Required:
a.Compute profit margin, gross profit margin, operating profit margin, asset turnover, and return on assets for each year. Round to three decimal places.
b.Compare the company's performance during the two years.