The following information is provided for two companies in the same industry:
Required:
1.Calculate the return on assets (ROA)for both companies.Show supporting calculations.Show your answer as a percentage with one decimal place.(For example,0.50000 = 50.0%).
2.Calculate the asset turnover for both companies.Show supporting calculations.Round your answer to two decimal places.(For example,0.98765 = 0.99)
3.Based on your calculations above,which company appears to be a better performer?
Definitions:
Conversion Costs
The sum of direct labor costs and manufacturing overhead costs, representing the costs to convert raw materials into finished goods.
Planned Production
The forecasted or scheduled production activities based on demand, inventory levels, and capacity planning to meet business objectives.
Prevention Costs
Expenses incurred to prevent defects in products or services, including training, quality control, and early design testing.
Schedule Of Activity
A detailed plan or timetable outlining specific tasks, milestones, or events to be completed within a defined period.
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