Laurel and Hardy Are Managers of Two Product Lines for Keaton

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Laurel and Hardy are managers of two product lines for Keaton Company. One of them is a candidate for promotion based on performance. Using the data below, determine who had the better performance using performance measures such as net income, profit margin, and return on assets. Show your calculations and support your answer.

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Definitions:

Net Method

An accounting technique that records purchases after discounts, where the purchase price is reduced by the expected discount amount.

Journal Entries

Journal entries are the foundational recordings of all financial transactions in the double-entry bookkeeping system, indicating debits and credits to accounts.

Normal Balance

The side (debit or credit) of an accounting ledger where increases are recorded, reflecting the natural balance of an account.

Financial Statement

A formal record of a company's financial activities, including the income statement, balance sheet, and cash flow statement.