Following are some data from the financial statements of TIK Company and TOK, Inc.: TIK Company TOK Inc. Total Assets Total Shareholders' Common Equity Total Debt Annual Interest Total Sales Earnings...

Following are some data from the financial statements of TIK Company and<br>TOK, Inc.:<br>TIK Company<br>TOK Inc.<br>Total Assets<br>Total Shareholders' Common Equity<br>Total Debt<br>Annual Interest<br>Total Sales<br>Earnings before interest and taxes<br>Net Income<br>(in thousand P)<br>10,000<br>9,000<br>1,000<br>100<br>25,000<br>6,250<br>3,690<br>10,000<br>5,000<br>5,000<br>500<br>25,000<br>6,250<br>3,450<br>Required:<br>1. Calculate the firms'<br>a. Operating Profit Margin<br>b. Net Profit Margin<br>c. Return on Total Assets<br>d. Return on Equity<br>2. Compare the profitability of the two firms using the figures arrived at in a, b. c<br>and d in number 1 above<br>3. Which is the more profitable firm? Why<br>

Extracted text: Following are some data from the financial statements of TIK Company and TOK, Inc.: TIK Company TOK Inc. Total Assets Total Shareholders' Common Equity Total Debt Annual Interest Total Sales Earnings before interest and taxes Net Income (in thousand P) 10,000 9,000 1,000 100 25,000 6,250 3,690 10,000 5,000 5,000 500 25,000 6,250 3,450 Required: 1. Calculate the firms' a. Operating Profit Margin b. Net Profit Margin c. Return on Total Assets d. Return on Equity 2. Compare the profitability of the two firms using the figures arrived at in a, b. c and d in number 1 above 3. Which is the more profitable firm? Why

Jun 05, 2022

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Following are some data from the financial statements of TIK Company and TOK, Inc.: TIK Company TOK Inc. Total Assets Total Shareholders' Common Equity Total Debt Annual Interest Total Sales Earnings...

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