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module 2 q ~ Search Home Insert Page Layout Formulas Data Review Viev A., %- on

ID: 2807953 • Letter: M

Question

module 2 q ~ Search Home Insert Page Layout Formulas Data Review Viev A., %- on ational Formatting Format as Table , ignment Number Cell Styles Paste A80 Wrap Text I Merge & Center 7 Contri 8 Net Margin 40,000,000 How much more in sales revenue (above $400 Million) would need to be generated by the added marketing expenditures of $2 Million to boost the fim's net margin from the projected $40 million to S42 million-a 5% increase in profitability. 01s 10,000,000 84 PROBLEM 5 (2 pts) 35 86 Your company eams $1,000,000 net margin on $50,000,000 revenue with $25,000,000 in assets. 37 88 a. What is your retum on assets? 89 90 91 92 b. What is your asset tumover? 93 94 95 96 97 PROBLEM 6 (2 pts) 98 Your company eamed $400,000 net margin with $10,000,000 in assets. Find your retum on net 99 worth if your assets are financed by: 100 101 a. $6,000,000 in liabilities. 102 1096 103 104

Explanation / Answer

Problem 5

Return on Assets = Net Income /Total Assets = 1000000/25000000 = 4%

Asset Turniver = Sales / Total Assets = 50000000 / 25000000 = 2