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

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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?

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