Consider the following financial data from the past year for Midwest Outdoor Equipment Corporation. Annual sales Net income $24,324,000 2,975,000 12,600,000 10,550,000 Cost of goods sold Total assets Inventory Receivables 2,875,000 3,445,000 a. Compute the profit margin. Note: Round your answer to 3 decimal places. Profit margin 0.122 3 decimal places required. b. Compute the asset turnover ratio. De 3 desimal piasec

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Chapter1: Making Economics Decisions
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Consider the following financial data from the past year for Midwest Outdoor Equipment Corporation.
Annual sales
Net income
$24,324,000
2,975,000
12,600,000
10,550,000
Cost of goods sold
Total assets
Inventory
Receivables
a. Compute the profit margin.
Note: Round your answer to 3 decimal places.
Profit margin
0.122
3 decimal places required.
2,875,000
3,445,000
Asset tumover ratio
b. Compute the asset turnover ratio.
Note: Round your answer to 3 decimal places.
Transcribed Image Text:10 es Consider the following financial data from the past year for Midwest Outdoor Equipment Corporation. Annual sales Net income $24,324,000 2,975,000 12,600,000 10,550,000 Cost of goods sold Total assets Inventory Receivables a. Compute the profit margin. Note: Round your answer to 3 decimal places. Profit margin 0.122 3 decimal places required. 2,875,000 3,445,000 Asset tumover ratio b. Compute the asset turnover ratio. Note: Round your answer to 3 decimal places.
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