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Alpha has assets of $102 million, net income of $4.3 million, and total assets of $97 million. Omega has assets of $12.4 million, net income of $0.76 million, and total sales of $9.3 million. Based on common-size income statements, which company is more profitable?

Respuesta :

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Answer:

Common-size income statement can be performed by stating each line on the income statement as a percentage of sales or revenue

Explanation:

One indicator of profitability is net profit margin.

The student meant total sales of $97 million.

Please find the attachment for the calculation

Alpha has a net profit margin of 4.4% while Omega has a net profit margin of 8.2%.

Omega is more profitable because it has a higher net profit margin.

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