SUPERIOR-PAPERS.COM essay writing company is the ideal place for homework help. If you are looking for affordable, custom-written, high-quality and non-plagiarized papers, your student life just became easier with us. Click the button below to place your order.
Order a Similar Paper Order a Different Paper
Blythe Corporation and Jacke Corporation, two companies of roughly the same size, are both involved in the manufacture of shoeâ€tracing devices. Each company depreciates its plant assets using the straightâ€line approach. An investigation of their financial statements reveals the information shown below.
Blythe Corp. Jacke Corp.
Net income $â€‚â€‚240,000 $â€‚â€‚300,000
Sales revenue 1,150,000 1,200,000
Total assets (average) 3,200,000 3,000,000
Plant assets (average) 2,400,000 1,800,000
Intangible assets (goodwill) 300,000 0
(a) For each company, calculate these values:
Return on assets.
(b) Based on your calculations in part (a), comment on the relative effectiveness of the two companies in using their assets to generate sales. What factors complicate your ability to compare the two companies?
Compute depreciation under different methods.