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Financial statement analysis by ratio analysis of given data.
You are given the following data on two companies, M and N (figures are millions):
M
N
Sales
$1,080
$1,215
Net Income
54
122
Investment
180
405
a) Which company has the higher profit margin? b) Which company has the higher investment turnover? c) Based solely on the data given, in which firm would you prefer to invest?
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