Compute the industry average for return on assets

Reference no: EM131763863

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.

Reference no: EM131763863

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