Question

Problem 9-07A a Pronghorn Corporation and Monty Corporation, two companies of roughly the same size, are both involved in the manufacture of shoe-tracing devices. Each company depreciates its plant assets using the straight-line approach. An investigation of their financial statements reveals the information shown below. Pronghorn Corp. Monty Corp. Net income $ 256,440 $ 322,320 Sales revenue 1,602,750 1,611,600 Total assets (average) 5,342,500 4,029,000 Plant assets (average) 2,430,000 1,829,000 Intangible assets (goodwill) 459,100 0 (a) For each company, calculate these values: (Round return on assets and profit margin to 1 decimal place, e.g. 6.2% and asset turnover to 2 decimal places, e.g. 17.54.) Monty Corp. Pronghom Corp. (1) Return on assets % % (2) Profit margin % % (3) Asset turnover times times

          Problem 9-07A a
Pronghorn Corporation and Monty Corporation, two companies of roughly the same size, are both involved in the manufacture of shoe-tracing devices. Each company depreciates its plant assets using the straight-line approach. An investigation of their financial statements reveals the information shown below.
Pronghorn
Corp.
Monty Corp.
Net income
$ 256,440
$ 322,320
Sales revenue
1,602,750
1,611,600
Total assets (average)
5,342,500
4,029,000
Plant assets (average)
2,430,000
1,829,000
Intangible assets (goodwill)
459,100
0
(a)
For each company, calculate these values: (Round return on assets and profit margin to 1 decimal place, e.g. 6.2% and asset turnover to 2 decimal places, e.g. 17.54.)
Monty Corp.
Pronghom Corp.
(1) Return on assets
%
%
(2) Profit margin
%
%
(3) Asset turnover
times
times

Problem 9-07A a
Pronghorn Corporation and Monty Corporation, two companies of roughly the same size, are both involved in the manufacture of shoe-tracing devices. Each company depreciates its plant assets using the straight-line approach. An investigation of their financial statements reveals the information shown below.
Pronghorn
Corp.
Monty Corp.
Net income
256,440 322,320
Sales revenue
1,602,750
1,611,600
Total assets (average)
5,342,500
4,029,000
Plant assets (average)
2,430,000
1,829,000
Intangible assets (goodwill)
459,100
0
(a)
For each company, calculate these values: (Round return on assets and profit margin to 1 decimal place, e.g. 6.2% and asset turnover to 2 decimal places, e.g. 17.54.)
Monty Corp.
Pronghom Corp.
(1) Return on assets
%
%
(2) Profit margin
%
%
(3) Asset turnover
times
times

Added by Brett H.

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