Kampa Company and Arbor Company are similar firms that operate in the same industry. Arbor began operations in 2001 and Kampa in 1995. In 2006, both companies pay 7% interest on their debt to creditors. The following additional information is available:

Write a one-half page report comparing Kampa and Arbor using the available information. Your discussion should include their ability to use assets efficiently to produce profits. Also comment on their success in employing financial leverage in2006.

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KAMPA COMPANY ARBOR COMPANY 2004 2.9 8.7% 22% 帛386,000 2006 2005 2006 1.6 5.8% 27% 棗200,000 2005 2004 2.7 Total asset turnover3.0 Retum on total assets Profit margin 89% 2.3% $400,000 9.5% 24% 棗370,000 5.5% 2.9% $150,000 5.2% 2.8% $100,000