Solve this problem A company had net income of $40,000, net sales of$300,000, and total assets of $200,000. Its profitmargin and total asset turnover were respectively:a) 13.3%; 0.2.b) 13.3%; 1.5.c) 2.0%; 1.5.d) 1.5%; 0.2.e) 1.5%; 13.3.

b. 13.3%; 1.5 Profit Margin = (Net Income / Net Sales) x 100Profit Margin = (40,000 / 300,000) x…

Answered: A company had net income of $40,000,…

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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A company has net income of $300,000, net sales of $2,500,000, and total assets of $2,000,000. Its return on total assets equals a. 6.7%. c. 8.3%. e. 15.0%. b. 12.0%. d. 80.0%.
Right Company reported beginning and ending total assets of $36,000 and $30,000, respectively. Its net sales revenue for the year were $26,070. What was Right's asset turnover ratio? A. 0.87 OB. 1.27 OC. 0.79 OD. 0.72
Calculating the Average Total Assets and the Return on Assets The income statement, statement of retained earnings, and balance sheet for Santiago Systems are as follows: Santiago Systems Income Statement For the Year Ended December 31, 20X2 Amount Percent Net sales $5,345,000 100.0% Less: Cost of goods sold (3,474,250) 65.0 Gross margin $1,870,750 35.0 Less: Operating expenses (1,140,300) 21.3 Operating income $730,450 13.7 Less: Interest expense (27,000) 0.5 Income before taxes Less: Income taxes (40%)* $703,450 13.2 (281,380) 5.3 Net income $422,070 7.9 * Includes both state and federal taxes.
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A company had average total assets of $897,000. Its gross sales were $1,090,000 and its net sales were $1,000,000. The company's total asset turnover is equal to: a. 0.82 b. 0.90 c. 1.09 d. 1.11 e. 1.26
8. A company reports the following: Sales Average total assets $5,844,000 3,325,000 Determine the asset turnover ratio. Round to one decimal place.
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Edison Co. reported the following for the current year: net sales of $80,000; cost of goods sold of $56,000; net income of $16,000; beginning balance of total assets of $60,000; and ending balance of total assets of $68,000. Compute (a) profit margin and (b) return on total assets.
A company has sales of $87,400, net income of $20,400, costs sales of $30,000, selling and administrative expenses of $4,100, and depreciation of $6,800. The common-size statement value of EBITDA is percent.

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A company had net income of $40,000, net sales of $300,000, and total assets of $200,000. Its profit margin and total asset turnover were respectively: a) 13.3%; 0.2. b) 13.3%; 1.5. c) 2.0%; 1.5. d) 1.5%; 0.2. e) 1.5%; 13.3.