Blythe Corporation and Jacke 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.
Blythe Corp. Jacke Corp.
Net income
$ 240,000
$ 300,000
Sales revenue
1,150,000
1,200,000
Total assets (average)
3,200,000
3,000,000
Plant assets (average)
2,400,000
1,800,000
Intangible assets (goodwill)
300,000
0
(a)
For each company, calculate these values: (Round answers to 2 decimal places, e.g. 6.25% or 17.54.)
Blythe Corp.
Jacke Corp.
(1) Return on assets
7.50 %
10.00 %
(2) Profit margin
20.87 %
25.00 %
(3) Asset turnover
.36 times
.40 times
