Financial information for Under Armour Inc. for the fiscal year ended January 30, 2016, follows ($thousands except for ratios).Average fixed assets$750,000Asset turnover2.5Profit margin0.12Return on assets for 2016 isO 0.048.O None of the other three answers is correct.O 0.300.O 20.833. On May, 1, 2020, Star Mines Inc. purchased an ore mine for $2,400,000 to access an estimated 1,244,000 tons of ore. Thecompany incurred development costs of $180,000 related to the mine and purchased equipment for the mine for $360,000with a useful life of 8 years. The equipment has no use outside of this mine project. The company is expected to restore the landfor alternative uses after mining is complete. The present value of the restoration cost is estimated to be $80,000. The companyextracted 144,000 tons of ore in 2020 and sold 120,000 tons. Round the depletion rate to two decimals used in yourcalculations.The ore mine should be recorded atO $2,660,000.O $2,580,000.O None of the other answers is correct.O $2,400,000.

Return on assets = Asset turnover x Profit margin

Answered: Financial information for Under Armour…

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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Financial information for Under Armour Inc. for the fiscal year ended January 30, 2016, follows ($ thousands except for ratios). Average fixed assets $750,000 Asset turnover 2.5 Profit margin 0.12 Return on assets for 2016 is 0.048. None of the other three answers is correct. O 0.300. O 20.833.