Company a Has Liabilities of $6,773,000 and Stockholders' Equity of $3,647,000

question 48

Essay

Company A has liabilities of $6,773,000 and stockholders' equity of $3,647,000 at the end of the current year,and sales revenue of $9,800,000 and net income of $899,080 for the year.Company B has assets of $1,680,000 and stockholders' equity of $978,750 at the end of the current year,and sales revenue of $1,950,000 and net income of $351,000 for the year.
A.Calculate the debt-to-assets and net profit margin ratios for each company.
B.Which company has greater financing risk?
C.Which company generates more profit per dollar of sales?

---

Definitions:

Social Cohesion

The degree of interconnectedness and trust among members of a society, contributing to its stability and solidarity.

Collective Goals

Objectives or outcomes that are shared by members of a group, driving cooperation and collective action towards achieving these common ends.

Group Level

Refers to the analysis or interaction occurring at the scale of a group rather than at the individual level, focusing on collective behaviors and dynamics.

Fortune 500

An annual list compiled and published by Fortune magazine that ranks 500 of the largest United States corporations by total revenue for their respective fiscal years.