Measuring the Results of Investing Activities Accounting information is provided below for two companies in the hair care products industry.
|
Faucett Company |
Danson Industries |
|||
|
(In millions) |
2004 |
2003 |
2004 |
2003 |
|
Total assets |
$33.80 |
$26.80 |
$84.40 |
$71.00 |
|
Sales |
40.7 |
30.5 |
95.5 |
71.6 |
|
Net income |
3.7 |
2.5 |
6.7 |
6 |
Required
A. Compute asset turnover, profit margin, and return on assets for each year and company. Also, compute asset growth for each company from 2003 to 2004.
B. Evaluate the performance of each company with respect to the other and also in terms of changes from 2003 to 2004. Identify reasons for the differences in performance.