The 2010 Financial Statements of Companies Y and Z Showed

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The 2010 financial statements of Companies Y and Z showed the following:


 Item  Net sales revenue  Profit margin  Total average assets  Financial leverage percentage  Interest expense (net of tax)  Company YZ$150,000$200,0006%5%$40,000$80,000+4%+3%$1,000$800\begin{array}{l}\begin{array} { l }\underline { \text { Item } } \\\text { Net sales revenue } \\\text { Profit margin }\\\text { Total average assets }\\\text { Financial leverage percentage } \\\text { Interest expense (net of tax) }\end{array}\begin{array} { l } \quad \quad \quad\underline { \text { Company } } \\\underline{\underline{Y}} & \underline{Z} \\\$ 150,000 & \$ 200,000 \\6 \% & 5 \% \\\$ 40,000 & \$ 80,000 \\+4 \% & +3 \% \\\$ 1,000 & \$ 800\end{array}\end{array}

Part A:
For each company,calculate the items listed in the following tabulation.  The 2010 financial statements of Companies Y and Z showed the following:     \begin{array}{l} \begin{array} { l } \underline { \text { Item } } \\ \text { Net sales revenue } \\ \text { Profit margin }\\ \text { Total average assets }\\ \text { Financial leverage percentage } \\ \text { Interest expense (net of tax) } \end{array} \begin{array} { l }   \quad \quad \quad\underline { \text { Company } } \\ \underline{\underline{Y}} & \underline{Z} \\ \$ 150,000 & \$ 200,000 \\ 6 \% & 5 \% \\ \$ 40,000 & \$ 80,000 \\ +4 \% & +3 \% \\ \$ 1,000 & \$ 800 \end{array} \end{array}    Part A:  For each company,calculate the items listed in the following tabulation.   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? 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?

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