Income statements for two companies (A and B) and the income statement for the industry are...
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Income statements for two companies (A and B) and the income statement for the industry are provided in the following table: (S thousands) Sales Cost of goods sold Selling, general, and administrative expenses Interest expense Pretax earnings Taxes Net earnings Company A $10.500 6,353 2,625 840 683 205 $478 Company B $8,250 5,239 2,021 536 454 145 $309 Industry 100.0% 62.8% 24.8% 7.0% 5.4% 1.7% 3.7% State your analysis based on the above information, which company is more competitive in the industry? Why? (Total: 20 marks) Income statements for two companies (A and B) and the income statement for the industry are provided in the following table: (S thousands) Sales Cost of goods sold Selling, general, and administrative expenses Interest expense Pretax earnings Taxes Net earnings Company A $10.500 6,353 2,625 840 683 205 $478 Company B $8,250 5,239 2,021 536 454 145 $309 Industry 100.0% 62.8% 24.8% 7.0% 5.4% 1.7% 3.7% State your analysis based on the above information, which company is more competitive in the industry? Why? (Total: 20 marks)
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We can examine several financial measures and compare them to industry averages to ascertain which c... View the full answer
Related Book For
Fundamentals of Analytical Chemistry
ISBN: 978-0495558286
9th edition
Authors: Douglas A. Skoog, Donald M. West, F. James Holler, Stanley R. Crouch
Posted Date:
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