Problem 29-2 Performance measures Keller Cosmetics maintains an operating profit margin of 8.70% and a sales-to-assets ratio of 3.30. It has assets of $640,000 and equity of $440,000. Assume that interest payments are $44,000 and the tax rate is 34%. a. What is the return on assets? b. What is the return on equity? Note: For all requirement, enter your answers as a percent rounded to 2 decimal places. a. Return on assets b. Return on equity 14.41 % 20.33 %
Problem 29-2 Performance measures Keller Cosmetics maintains an operating profit margin of 8.70% and a sales-to-assets ratio of 3.30. It has assets of $640,000 and equity of $440,000. Assume that interest payments are $44,000 and the tax rate is 34%. a. What is the return on assets? b. What is the return on equity? Note: For all requirement, enter your answers as a percent rounded to 2 decimal places. a. Return on assets b. Return on equity 14.41 % 20.33 %
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 51E: Juroe Company provided the following income statement for last year: Juroes balance sheet as of...
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![Problem 29-2 Performance measures
Keller Cosmetics maintains an operating profit margin of 8.70% and a
sales-to-assets ratio of 3.30. It has assets of $640,000 and equity of
$440,000. Assume that interest payments are $44,000 and the tax rate
is 34%.
a. What is the return on assets?
b. What is the return on equity?
Note: For all requirement, enter your answers as a percent
rounded to 2 decimal places.
a. Return on assets
b. Return on equity
14.41 %
20.33 %](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3d0a6382-0102-44c5-938c-6645ce5d0f48%2Fa2405f10-6751-4c74-9a7d-0b6f159969b4%2Ff1dwyc4_processed.png&w=3840&q=75)
Transcribed Image Text:Problem 29-2 Performance measures
Keller Cosmetics maintains an operating profit margin of 8.70% and a
sales-to-assets ratio of 3.30. It has assets of $640,000 and equity of
$440,000. Assume that interest payments are $44,000 and the tax rate
is 34%.
a. What is the return on assets?
b. What is the return on equity?
Note: For all requirement, enter your answers as a percent
rounded to 2 decimal places.
a. Return on assets
b. Return on equity
14.41 %
20.33 %
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