Blue Harbor Footwear, Inc. is planning to open a new store that is expected to generate annual sales of $1,200,000. The company anticipates an asset turnover ratio of 3.0 times per year, and its profit margin on sales will be 6%. What will be the expected net income and return on assets (ROA) for the year?

Blue Harbor Footwear, Inc. is planning to open a new store that is expected to generate annual sales of $1,200,000. The company anticipates an asset turnover ratio of 3.0 times per year, and its profit margin on sales will be 6%. What will be the expected net income and return on assets (ROA) for the year?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 20EA: Towson Industries is considering an investment of $256,950 that is expected to generate returns of...

See similar textbooks

Similar questions

What would be the net income and return on assets for the year
muka
General accounting
Hernandez Corporation expects to have the following data during the coming year. What is Hernandez's expected ROE? (Show your work) Assets = $200,000 D/A = 65% EBIT = $25,000 Interest rate = 8% Tax rate = 40%
A math tee shirt business is expected to generate $19,000 in revenue per year for the next 20 years. If the income is reinvested in the business at a rate of 3% per year compounded continuously, determine the present value of this income stream. Present value (exact value) = Present value (rounded to the nearest cent) X dollars dollars
What is the payback period of this financial accounting question?
A business worth $180,000 is expected to grow at 12% per year compounded annually for the next 4 years. (a) Find the expected future value. (b) If funds from the sale of the business today would be placed in an account yielding 8% compounded semiannually, what would be the minimum acceptable price for the business at this time?
Best Properties is considering an investment that will pay $1,000.00 at the end of each year for the next 15 years. It expects to earn an annual return of 16% on its investment. How much should the company pay today for its investment? Type your numeric answer and submit
What would be the net income and return on assets for the year on this accounting question?
Database Systems is considering expansion into a new product line. Assets to support expansion will cost $890,000. It is estimated that Database can generate $1,860,000 in annual sales, with an 13 percent profit margin. What would net income and return on assets (investment) be for the year? (Input your return on assets answer as a percent rounded to 2 decimal places.) Net Income Return on assets 96
A company is considering investment in new equipment... Please answer the financial accounting question
CelebNav, Inc. had sales last year of $750,000 and the analysts are predicting a good year for the start up, with sales growing 21 percent a year for the next 3 years. After that, the sales should grow 12 percent per year for another two years, at which time the owners are planning on selling the company. What are the projected sales for the last year before the sale? (Round intermediate calculations to 6 decimal places, in all cases round your final answer to the nearest penny.) Projected sales in year 5 $