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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 2,875,000 3,445,000 a. Compute the profit margin. Note: Round your answer to 3 decimal places. Profit margin 12.231 b. Compute the asset turnover ratio Note: Round your answer to 3 decimal places. Asset turnover ratio c. Compute the return on assets ratio. Note: Round your answer to 3 decimal places.

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 12.231 b. Compute the asset turnover ratio Note: Round your answer to 3 decimal places. Asset turnover ratio c. Compute the return on assets ratio. Note: Round your answer to 3 decimal places.

FINANCIAL ACCOUNTING
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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Consider the following financial data from the past year for Midwest Outdoor Equipment Corporation. Annual sales Net income $24,324,000 2,975,000 Cost of goods sold Total assets Inventory Receivables a. Compute the profit margin. Note: Round your answer to 3 decimal places. Profit margin 12,600,000 10,550,000 2,875,000 3,445,000 12.231 Asset turnover ratio b. Compute the asset turnover ratio. Note: Round your answer to 3 decimal places. c. Compute the return on assets ratio. Note: Round your answer to 3 decimal places.
Transcribed Image Text:Consider the following financial data from the past year for Midwest Outdoor Equipment Corporation. Annual sales Net income $24,324,000 2,975,000 Cost of goods sold Total assets Inventory Receivables a. Compute the profit margin. Note: Round your answer to 3 decimal places. Profit margin 12,600,000 10,550,000 2,875,000 3,445,000 12.231 Asset turnover ratio b. Compute the asset turnover ratio. Note: Round your answer to 3 decimal places. c. Compute the return on assets ratio. Note: Round your answer to 3 decimal places.
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