7 information is provided below for two companies in thousands marisasergio sales 40 4352271

7.Information is provided below for two companies:

(in thousands)MarisaSergio


Net income1,2003,860

Total assets10,00024,000


a.Compute asset turnover, profit margin, and return on assets for each company.

b.Compare the companies' performance.

8.Colonnade Enterprises has a profit margin of 10% and an asset turnover of 2.5 times. Operating revenues totaled $600,000.


a.Compute return on assets.

b.Compute total assets.

c.Compute net income.

d.Based on the above information, what operating strategy is probably used by Colonnade Enterprises?

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