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  • Sep 16, 2014, 12:56 PM
    kofit
    Accounting
    [FONT=Times New Roman][SIZE=3][COLOR=#000000]

    [/COLOR][/SIZE][/FONT][COLOR=#000000]Which company is doing better,
    company A or B, and why, for the past year? Explain/support your answer.[/COLOR]
    [FONT=Times New Roman][SIZE=3][COLOR=#000000]

    [/COLOR][/SIZE][/FONT][COLOR=#000000]Company A has $100 million in Sales
    Revenue and has $2 million in Net Income (after all taxes and expenses) for the
    past year.[/COLOR]
    [FONT=Times New Roman][SIZE=3][COLOR=#000000]

    [/COLOR][/SIZE][/FONT][COLOR=#000000]Company B has $10 million in Sales
    Revenue and has $1 million in Net Income (after all taxes and expenses)
    for the past year.[/COLOR]
    [FONT=Times New Roman][SIZE=3][COLOR=#000000]

    [/COLOR][/SIZE][/FONT][COLOR=#000000]They have identical Assets,
    Liabilities and Shareholder's Equity. Assume they are in the same
    industry and same region of the country.[/COLOR]
    [FONT=Times New Roman][SIZE=3][COLOR=#000000]

    [/COLOR][/SIZE][/FONT]
  • Sep 16, 2014, 01:11 PM
    kingflash
    Company B. They had 90% less sales than Company A and made 50% of what Company A made. Company B obviously had less operating expenses
  • Sep 16, 2014, 07:04 PM
    paraclete
    From the data provided one company has a lower return on investment

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