Sub Station and Planet Sub reported the following selected financial data ($ in thousands). Sub Station’s business strategy is to sell the best tasting sandwich with the highest quality ingredients. Planet Sub’s business strategy is to sell the lowest cost sub on the planet. Sub Station Planet Sub Net sales$109,349 $63,171 Net income 27,022 4,592 Total assets, beginning 76,283 40,599 Total assets, ending 118,571 46,733 Required:1. Calculate Sub Station’s return on assets, profit margin, and asset turnover ratio. (Enter your answers in thousands of dollars. (i.e. 123,000 should be entered as 123).) Return on AssetsChoose Numerator÷Choose Denominator=Return on Assets ÷ =Return on assets ÷ = Profit MarginChoose Numerator÷Choose Denominator=Profit Margin ÷ =Profit Margin ÷ = Asset TurnoverChoose Numerator÷Choose Denominator=Asset Turnover ÷ =Asset Turnover ÷ = times

Formulas: 1. Average total Assets: = (Beginning + Ending total assets)/ 2 2. Return on assets: =…

Answered: 1. Calculate Sub Station’s return on…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Sub Station and Planet Sub reported the following selected financial data ($ in thousands). Sub Station’s business strategy is to sell the best tasting sandwich with the highest quality ingredients. Planet Sub’s business strategy is to sell the lowest cost sub on the planet.

	Sub Station		Planet Sub
Net sales	$	109,349		$	63,171
Net income		27,022			4,592
Total assets, beginning		76,283			40,599
Total assets, ending		118,571			46,733

Required:

1. Calculate Sub Station’s return on assets, profit margin, and asset turnover ratio. (Enter your answers in thousands of dollars. (i.e. 123,000 should be entered as 123).)

Return on Assets
Choose Numerator	÷	Choose Denominator	=	Return on Assets
	÷		=	Return on assets
	÷		=
Profit Margin
Choose Numerator	÷	Choose Denominator	=	Profit Margin
	÷		=	Profit Margin
	÷		=
Asset Turnover
Choose Numerator	÷	Choose Denominator	=	Asset Turnover
	÷		=	Asset Turnover
	÷		=		times

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