For the year ended December 31, 2020, Brookstone Corp. earned an ROI of 10%. Sales for the year were $18 million, and the average asset turnover was 2.5. Average stockholders' equity was $3.5 million. Required: a. Calculate Brookstone Corp.'s margin and net income. b. Calculate Brookstone Corp.'s return on equity.
For the year ended December 31, 2020, Brookstone Corp. earned an ROI of 10%. Sales for the year were $18 million, and the average asset turnover was 2.5. Average stockholders' equity was $3.5 million. Required: a. Calculate Brookstone Corp.'s margin and net income. b. Calculate Brookstone Corp.'s return on equity.
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Transcribed Image Text:For the year ended December 31, 2020, Brookstone Corp. earned an ROI
of 10%. Sales for the year were $18 million, and the average asset
turnover was 2.5. Average stockholders' equity was $3.5 million.
Required:
a. Calculate Brookstone Corp.'s margin and net income.
b. Calculate Brookstone Corp.'s return on equity.
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