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Edit View History Bookmarks People Window Help leyPLUSWWileyPLUSW WileyPLUS xd WileyPLUS Secure https://edugen.wileyplus.com/edugen/student/mainfr.uni Course: 2018SP F x co Julissa LUS Kimmel, Accounting, 6e FINANCIAL & MANAGERIAL (ACC 110/ 210) tudy & Practice Gradebook ORION Downloadable eTextbook en Assignment CALCURATOR FULL SCREEN PRINTER VERSION BACK NEXT SOURCES Exercise 9-17 Your answer is incorrect. Try again. Carla Vista Co. reports the following information (in milions) during a recent year: net sales, $11,165.0; net earnings, $335.0; total assets, ending, $4,465.0; and total assets, beginning, $5,275.0 (a) Calculate the (1) return on assets, (2) asset turnover, and (3) profit margin. (Round answers to 1 decimal place, e.g. 6.2% and 6.2.) 1. Return on assets by Study 2. Asset turnover 33: times 3. Profit margin Click if you would like to show work for this question: OpenShmy0 Question Attempts: 2 of S used SAVE FOR LATER SUBMET ANSWER l Rights Reserved. A Division of 2ohn Wev.h5 Version 4 .24.5.1

Explanation / Answer

1. Return on assets = net earnings/average assets * 100

= $335/ (5275+4465)/2 * 100

= $335/ $4870 *100

= 6.88%

2. Assets turnover = Sales/ Average assets

= $11165/ $4870

= 2.29 times

3. Profit margin = Net earnings / Net sales * 100

= $335/ $11165 * 100

= 3%

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