A return on sales 6.3 and a return on assets14.4 is SJ return on assets comparable to competitors?

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Ernqlsbevggborbire

Business Finance

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Part One:

Complete the following for this assignment: Must be 3 pages APA style.

  • Use the comparative analysis below for S&J Plumbing, Inc. to determine if S&J Plumbing's return on assets is comparable to its competitors in the same industry.
  • Use the library and other resources to research competitors.
  • Support your answers.


Part Two: Only has to be 100 words on its own page.

S&J Plumbing, Inc.'s 2010 income statement shows a net profit before tax of $468, whereas the balance sheet that the company's equity for the fiscal year-end 2010 is $1,746.

  • Calculate the company's return on equity and explain whether the managers are providing a good return on the capital provided by the company’s shareholders.
  • Diagram and explain the operating cycle of a service company.


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Explanation & Answer

hi pal The paper is ready

Running head: S&J COMPARATIVE ANALYSIS

S&J Plumbing Inc. Comparative Analysis
Student’s Name
Institution

1

S&J COMPARATIVE ANALYSIS

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Often, financial analysts in corporations are obliged to determine the return on assets.
Lexically, return on assets refers to the profit realized by an organization, firm, or company
relative to the company’s total assets. Mathematically, return on assets is calculated by dividing
the corporation’s annual earnings by the total assets. Notably, return on assets is recorded as a
percentage. Some scholars refer return on assets as the return on investment (Porter & Norton,
2016).
= Net Income/Total assets.
Return on assets represent the profits generated from the invested...


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