Barak Enterprise has an equity multiplier of 2.6 times, total assets of $2,312,000, ROEof 14,8%, assets turnover (ATO) that is 40% beyond the optimal ATO.Required: Calculate the net sales provided that sales return and discounts are zero andfind out ROTA.

Solution 1-Asset turnover ratio= Net assets/average asset or Total assets 40%…

Answered: Barak Enterprise has an equity…

Barak Enterprise has an equity multiplier of 2.6 times, total assets of $2,312,000, ROE of 14,8%, assets turnover (AT0) that is 40% beyond the optimal ATO.

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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Question

Barak Enterprise has an equity multiplier of 2.6 times, total assets of $2,312,000, ROE
of 14,8%, assets turnover (ATO) that is 40% beyond the optimal ATO.
Required: Calculate the net sales provided that sales return and discounts are zero and
find out ROTA.

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