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).
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
Problem 2MC
Related questions
Question
100%

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).
Expert Solution

This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps

Recommended textbooks for you

Intermediate Financial Management (MindTap Course…
Finance
ISBN:
9781337395083
Author:
Eugene F. Brigham, Phillip R. Daves
Publisher:
Cengage Learning

Intermediate Financial Management (MindTap Course…
Finance
ISBN:
9781337395083
Author:
Eugene F. Brigham, Phillip R. Daves
Publisher:
Cengage Learning