Cullumber Company reports the following information (in millions) during a recen

Question

Cullumber Company reports the following information (in millions) during a recent year: net sales, $12,100.0: net earnings, $270.0; total assets, ending, $5,105.0; and total assets, beginning, $4,330.0 (a) Calculate the (1) return on assets, (2) asset turnover, and (3) profit margin. (Round answers to 1 decimal place, e.g. 6.296 and 6.2.) 1. Return on assets 2. Asset turnover Click if you would like to Show Work for this question: By accessing this Question Assistance, you will learn while you earn points based on the Point Potential Policy set by your instructon atten 8

Explanation / Answer

1 return on assets Nett Income/Average assets Average Assets = (4330+5105)/2 4717.5 ROA = 270/4717.5 5.7% 2 asset turnover Net Sales/avg assets 12100/4717.5 2.6 times 3 profit margin Net Income/Net Sales 270/12100 2.2%

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