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Response Details:
Company X:
Net profit margin= (Net income /Sales )
= (29,000 /700,000)
= 0.041
Total asset turnover =Sales /assets
=700,000/300,000
=2.33
Return on total assets=Net income/Total assets
= (29,000 /300,000)
= 0.096
Company Y
Net profit margin= (Net income /Sales )
0.005 = 31,000/sales
So sales = 62,00,000
Return on total assets=Net income/Total assets
0.001 = (31,000 /Total assets )
Total assets =31,00,000
Total asset turnover =Sales /assets
=62,00,000/31,00,000
= 2
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