Item17 Check my workCheck My Work button is now enabled1 Item 17 Papas Pizza is...
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Accounting
Item17
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Item 17
Papas Pizza is the market leader and Pizza Prince is an up-and-coming player in the highly competitive delivery pizza business. The companies reported the following selected financial data ($ in thousands):
Papas Pizza
Pizza Prince
Net sales
$25,628
$3,335
Net income
3,723
279
Total assets, beginning
16,498
1,069
Total assets, ending
16,965
2,657
Required:
1. Calculate the return on assets, profit margin, and asset turnover ratio for Papas Pizza. 2. Calculate the return on assets, profit margin, and asset turnover ratio for Pizza Prince. 3-a. Which company has the more favorable profit margin? 3-b. Which company has the more favorable asset turnover?
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