Question: The following information is provided for Nguyen Company and Northwest Corporation.
|
(in $ millions)
|
Nguyen Company
|
Northwest Corporation
|
|
Net income 2017
|
$165
|
$420
|
|
Net sales 2017
|
1,650
|
4,900
|
|
Total assets 12/31/15
|
1,000
|
2,400
|
|
Total assets 12/31/16
|
1,050
|
3,000
|
|
Total assets 12/31/17
|
1,150
|
4,000
|
If Nguyen and Northwest are in the same industry and the industry average for return on assets is equal to 30%, which of the following statements is true?
A. Nguyen is more profitable than Northwest.
B. Northwest is more profitable than Nguyen.
C. Both Nguyen and Northwest are more profitable than the average company in their industry
D. Nguyen is more profitable than the average company in its industry.