A firm has $180,000 in average receivables, which represents 50 days sales, average assets of $900,000, and a profit margin of 8%. Calculate the Return on Assets (ROA).

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter22: Providing And Obtaining Credit
Section: Chapter Questions
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A firm has $180,000 in average receivables, which represents
50 days sales, average assets of $900,000, and a profit margin
of 8%.
Calculate the Return on Assets (ROA).
Transcribed Image Text:A firm has $180,000 in average receivables, which represents 50 days sales, average assets of $900,000, and a profit margin of 8%. Calculate the Return on Assets (ROA).
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