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

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

Century 21 Accounting General Journal

11th Edition

ISBN:9781337680059

Author:Gilbertson

Publisher:Gilbertson

Chapter17: Financial Statement Analysis

Section17.4: Analyzing Financial Statements Using Financial Ratios

Problem 1OYO

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