Information about two video game companies was recently taken from the companies annual reports. Virtual Videos and

Information about two video game companies was recently taken from the companies’ annual reports. Virtual Videos and Games Galore both have an income tax rate of 34 percent, and below is the information collected from the two stores (amounts in thousands).

Required
Calculate the return on assets, return on sales, and asset turnover for both companies. What can you tell about each company based on theseratios?

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Virtual Videos Games Galore Sales Interest expense Net income Average total assets $15,134 80 24 3,048 $20,143 150 982 7,125 5