General accounting Harrison Apparel Ltd. is planning to open a new store thatis expected to generate annual sales volume of $1,200,000.The store will turn over its assets 3 times per year. Theprofit margin on sales is projected to be 8%.What would be the net income and return on assets (ROA)for the year?

Step 1: Definition of Return on Assets (ROA)Return on Assets (ROA) is a profitability ratio that…

Answered: Harrison Apparel Ltd. is planning to…

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...

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Harrison Apparel Ltd. is planning to open a new store that is expected to generate annual sales volume of $1,200,000. The store will turn over its assets 3 times per year. The profit margin on sales is projected to be 8%. What would be the net income and return on assets (ROA) for the year?