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Auditing: A Risk Based-Approach (MindTap Course List)
11th Edition
ISBN: 9781337619455
Author: Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher: Cengage Learning
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Provide correct answer general accounting

Transcribed Image Text:Titus Corporation and Vane Corporation, two companies of roughly the same size, are both
involved in the manufacture of shoe-tracing devices. Each company depreciates its plant
assets using the straight-line approach. An investigation of their financial statements reveals
the following information.
Titus Corp. Vane Corp.
$366,740
Net income
$257,430
Sales
1,437,210 1,299,350
Total assets (average)
3,413,490 3,369,790
Plant assets (average)
2,555,240 1,803,380
0
Intangible assets (goodwill) 447,740
For each company, calculate these values:
1) Return on assets.
2) Profit margin.
3) Asset turnover.
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