ure . Categories Sales Cost of goods sold Variable expenses Fixed expenses Inven

Question

ure . Categories Sales Cost of goods sold Variable expenses Fixed expenses Inventory Accounts receivable Other current assets Fixed assets Values $45,600,000 $28,500,000 $5,700,000 $ 6,850,000 $ 8,850,000 $4,850,000 $3,850,000 $ 6,850,000 a. What is the net profit margin for this firm? (Round your answer to 2 decimal places.) Net profit margin b. What is the asset turnover? (Round your answer to 2 decimal places.) set tumover c. What is the return on assets? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Return on assets d. What is the size of the total assets used by the firm? Total assets

Explanation / Answer

Net profit or net income = Sales - Cost of goods sold - Variable expenses - Fixed expenses = 45600000-28500000-5700000-6850000 = 4550000

a) Net profit percentage = (4550000/45600000)*100 = 9.98%

d) Total Assets = Fixed Assets +Current Assets +Inventory + Account recievables = 6850000+3850000+8850000+4850000 =24400000

b) Asset Turnover = Sales / Total Assets = 45600000/24400000 = 1.86

c) Return on assets = Net income/ Total Assets = 4550000/24400000= 18.65%

Related Questions

Navigate

• Browse (All)
• Browse U
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.