The 2014 Financial Statements of Companies Y and Z Showed

The 2014 financial statements of Companies Y and Z showed the following: $\begin{array}{lcc}&\text { Company }\\\text { Item }&Y&Z\\\text { Net sales revenue } & \$ 150,000 & \$ 200,000 \\\text { Profit margin } & 6 \% & 5 \% \\\text { Total average assets } & \$ 40,000 & \$ 80,000 \\\text { Financial leverage percentage } & -5 \% & +6.5 \% \\\text { Interest expense (net of tax) } & \$ 1,000 & \$ 800\end{array}$ Required:
Part A: For each company, calculate the items listed in the following tabulation. $\begin{array}{lcc}&\text { Company }\\\text { Item }&Y&Z\\1.\text { Net income } & \$ & \$ \\2.\text { Return on assets } & \% & \% \\3.\text { Return on equity } & \% & \% \\4.\text { Average stockholders' equity } & \$ & \$\end{array}$ Part B: Assuming both Company Y and Company Z are in the same industry, which company (Y or Z) appears to be the better investment and why?