Question:
Could you help me calculate the sales-to-assets ratio, the profit margin, and the return on the two firms listed below;
Sales Profits Assets
Federal Stores $100 $10 $50
General Stores 20 4 20
(Financial data is in the millions)
If these two companies were to merge and the federal stores continued to sale goods worth $100 million, could you show me how the three financial ratios would change?