Please provide the correct answer to this general accounting problem using valid calculations. Martinez Software has netincome of $450,000, net sales of$3,600,000, and average totalassets of $2,250,000.What is its return on totalassets?

Explanation of Return on Total Assets (ROA): Return on Total Assets is a financial ratio that…

Answered: Martinez Software has net income of…

Martinez Software has net income of $450,000, net sales of $3,600,000, and average total assets of $2,250,000. What is its return on total assets?

Financial Management: Theory & Practice

16th Edition

ISBN:9781337909730

Author:Brigham

Publisher:Brigham

Chapter7: Corporate Valuation And Stock Valuation

Section: Chapter Questions

Problem 1P: Ogier Incorporated currently has $800 million in sales, which are projected to grow by 10% in Year 1...

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Question

Please provide the correct answer to this general accounting problem using valid calculations.

Martinez Software has net
income of $450,000, net sales of
$3,600,000, and average total
assets of $2,250,000.
What is its return on total
assets?

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Ogier Incorporated currently has $800 million in sales, which are projected to grow by 10% in Year 1 and by 5% in Year 2. Its operating profitability ratio (OP) is 10%, and its capital requirement ratio (CR) is 80%? What are the projected sales in Years 1 and 2? What are the projected amounts of net operating profit after taxes (NOPAT) for Years 1 and 2? What are the projected amounts of total net operating capital (OpCap) for Years 1 and 2? What is the projected FCF for Year 2?