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

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?

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  1. 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.

    alpha-has-assets-of-102-million-net-income-of-4-3-million-and-total-assets-of-97-million-omega-h-14699774-87

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