At the end of the year, Wrinkle Free Laundry (WFL) had $150,000 in total assets. (a)If WFL’s total assets turnover was 2.0, what were its sales revenues? (b)If WFL’s return on assets was 6 percent, what were its net income and net profit margin?

At the end of the year, Wrinkle Free Laundry (WFL) had $150,000 in total assets. (a)If WFL’s total assets turnover was 2.0, what were its sales revenues? (b)If WFL’s return on assets was 6 percent, what were its net income and net profit margin?

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter2: Analysis Of Financial Statements

Section: Chapter Questions

Problem 8PROB

See similar textbooks

Related questions

Q: Arshadi Corp.'s sales last year were $49,000, and its total assets were $22,000. What was its total…

A: Total assets turnover ratio measures the efficiency of the company in utilization of its total…

Q: ABC Corporation has the following information for the year: Sales revenue: $500,000 Cost of…

A: INCOME STATEMENTIncome Statement is one of the Important Financial Statement of the Company. Income…

Q: TJ's has annual sales of $813,200, total debt of $171,000, total equity of $396,000, and a profit…

A: Step 1: Introduction or Assets:Assets are the financial resources of any business that provide a…

Q: During the current year, Sokowski Manufacturing earned income of $446,500 from total sales of…

A: Please find the answer to the above question below:

Q: The Timber Ridge Company has the following relationships: Sales/Total assets = 2.46; ROA = 0.1080…

A: SalesTotal Assets = 2.46 ROA = 0.1080 Net profit Margin = Net IncomeSales

Q: Why are Old Men so Daggum Stubborn (OMDS) had the following information for the previous calendar…

A: RETURN ON INVESTMENT Return on investment is the Ratio between Net Operating Income & Average…

Q: X-1 Corp's total assets at the end of last year were $450,000 and its EBIT was $55,000. What was its…

A: Introduction: The Basic Earning Power Ratio (BEP) measures how well a firm generates earnings in…

Q: Crane reported the following information for its fiscal year end: On net sales of $ 53.000 billion,…

Q: Akerley Convention Center. had a net income of $33,000 and $138,000 for the current and prior years,…

A: Net Profit Ratio is the percentage of net profit attributable to sales. It shows how much net profit…

Q: Jake's Jamming Music, Incorporated, announced an ROA of 8.64 percent, ROE of 15.30 percent, and…

A: “Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: Nerf Mania reports net income of $500,000, net sales of $4,000,000, and average assets of…

A: The objective of this question is to calculate the Return on Assets (ROA) for Nerf Mania. ROA is a…

Q: (Profitability analysis) Last year Triangular Resources earned $4.6 million in net operating income…

A: Here,Net Operating Income is $4.6 millionOperating Profit Margin is 19.7%Total Asset Turnover Ratio…

Q: Peyton's Palace has net income of $13.5 million on sales revenue of $115 million. Total assets were…

A: Ratio analysis is a quantitative method of getting inside review of an organisation. It helps in…

Q: XYZ Corporation earned $500,000 in revenue for the year. The cost of goods sold was $200,000, and…

A: Gross Profit: Gross profit represents the amount of revenue remaining after deducting the cost of…

Q: Flitter reported net income of $23,500 for the past year. At the beginning of the year the company…

A: Return on Assets: Return on assets denotes the relationship between a…

Q: Brenda's Bar and Grill has current liabilities of $21 million. Cash makes up 10 percent of the…

A: “Since you have asked multiple questions, we will answer the first question for you. If you want any…

Q: Rappaport Corp.'s sales last year were $375,000, and its net income after taxes was $23,000. What…

A: Profit margin on sales is ratio of net profit on sales that is as follows: As per formula Profit…

Q: During the current year, Sokowski Manufacturing earned income of $320,000 from total sales of…

A: Sales margin is one of profitability ratio being used in business. This shows how much net income…

Q: net

A: Introduction: The term net income can be defined as the excess of revenues over the expenses of the…

Q: arry's BBQ had sales revenue for the year of $400 million and net income of $30 million. Total…

A: Return on Asset = This ratio indicates that how a company manage its asset to generate revenue for…

Q: Total assets

A: The Return on Assets (ROA) is calculated using the formula:ROA = Net Income / Total Assets Given…

Q: Wims, Inc., has sales of $18.3 million, total assets of $13.3 million and total debt of $4.1…

A: Solution:- Net income means the amount the company is earning its profits ie. Revenues – total…

Q: During the current year, Kite Corporation had average total assets are $500,000, total asset…

A: The equity multiplier will be calculated by finding out shareholders equity as total assets are…

Q: Why are Old Men so Daggum Stubborn (OMDS) had the following information for the previous calendar…

A: The objective of the question is to calculate the investment turnover for the company Old Men so…

Q: Pharoah reported the following information for its fiscal year end: On net sales of $56.600 billion,…

A: A ratio that helps to evaluate how much portions of the sales revenue of a company turns in the…

Q: For the past year, shame ltd., had sales of $45,002, interest expense of $4,306, cost of goods sold…

A: One of a business's performance accounts, an income statement, commonly referred to as a profit and…

Q: Consider the following operating results for the past year for Sanitation Inc.: Sales = $22,561…

A: Operating cash flow is the cash flow generated from the operations of the company.Sales =…

Q: Last year, Hassan's Madhatter, Inc. had an ROA of 6 percent, a profit margin of 12.80 percent, and…

A: The provided information are: ROA = 6% Profit margin = 12.80% Sales = $15 Million

Q: Swiss Group reports net income of $27,000 for the year. At the beginning of the year, Swiss Group…

A: RETURN ON INVESTMENTReturn on investment is one of the profitability ratios which shows how much…

Q: LaPlante Inc. has a profit margin of 14% and an investment turnover of 2. Sales revenue is $800,000.…

A: The investment turnover ratio compares the revenue received to its equity and debt. The ratio is…

Q: For the past year, a firm had sales of $41,987, interest expense of $3,232, cost of goods sold of…

A: Lets understand the basics.Net income is a income earned by deducting all expenses from the sales…

Q: During the current year, Sokowski Manufacturing earned income of $263,340 from total sales of…

A: Formulas: Asset turnover: =Sales / Average capital assets ROI: =Margin * Asset Turnover

Q: During the current year, Sokowski Manufacturing earned income of $327,600 from total sales of…

A: Calculation of Asset Turnover Ratio Asset Turnover ratio = Net Sales/ Average Total Assets…

Q: Akerley Hospitality reports a net income of $23,000 for the year. At the beginning of the year,…

A: Average assets=Beginning assets+Closing assets2=$134,000+$328,0002=$231,000

Question

At the end of the year, Wrinkle Free Laundry (WFL) had $150,000 in total assets.

(a)If WFL’s total assets turnover was 2.0, what were its sales revenues?
(b)If WFL’s return on assets was 6 percent, what were its net income and net profit margin?

Video Video

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.

Similar questions

Brandt Corporation had sales revenue of 500,000 for the current year. For the year, its cost of goods sold was 240,000, its operating expenses were 50,000, its interest revenue was 2,000, and its interest expense was 12,000. Brandts income tax rate is 30%. Prepare Brandts multiple-step income statement for the current year.
During the current year, Sokowski Manufacturing earned income of $350,000 from total sales of $5,500,000 and average capital assets of $12,000, 000. What is the sales margin?
During the current year. Plainfield Manufacturing earned income of $845,000 from total sales of $9,350,000 and average capital assets of $13,500,000. What is the sales margin?
Need answer
At the end of the year, Universal Utilities (UU) had $1.5 million in total assets. Its total assets turnover was 1.4, and its return on assets (ROA) was 7.14 percent. What were UU's sales revenues and net profit margin?
None
If you give me wrong answer, I will give you unhelpful rate
Lions Corp's sales last year were $27,000, and its total assets were $16,000. What was its total assets turnover ratio (TATO)?
X-1 Corp's total assets at the end of last year were $440,000 and its EBIT was $55,000. What was its basic earning power (BEP) ratio?
Please help me
Chambliss Corp.'s total assets at the end of last year were $265,000 and its EBIT was 62,500. What was its basic earning power (BEP)? Select the correct answer. a. 22.88% b. 24.28% c. 23.58% d. 24.98% e. 22.18%
During the current year, Sokowski Manufacturing earned income of $422,100 from total sales of $6,300,000 and average capital assets of $11,900,000. What is the sales margin? If required, round your answer to one decimal place.