(Profitability analysis) The R. M. Smithers Corporation earned an operating profit margin of 10.2 percent based on sales of $10.6 million and total assets of $4.6 million last year. a. What was Smithers' total asset turnover ratio? b. During the coming year, the company's president has set a goal of attaining a total asset turnover of 3.3. How much must firm sales increase, other things being the same, for the goal to be achieved? (State your answer in both dollars and the corresponding percent increase in sales.) c. What was Smithers' operating return on assets last year? Assuming the firm's operating profit margin remains the same, what will the operating return on assets be next year if the total asset turnover goal is achieved? a. What was Smithers' total asset turnover ratio? The company's total asset turnover ratio is 2.30. (Round to one decimal place.) b. During the coming year, the company's president has set a goal of attaining a total asset turnover of 3.3. How much must firm sales increase, other things being the same, for the goal to be achieved? (State your answer in both dollars and the corresponding percent increase in sales.) The firm sales increase must be $10.58 million (Round to two decimal places.) or %. (Round to one decimal place.)
(Profitability analysis) The R. M. Smithers Corporation earned an operating profit margin of 10.2 percent based on sales of $10.6 million and total assets of $4.6 million last year. a. What was Smithers' total asset turnover ratio? b. During the coming year, the company's president has set a goal of attaining a total asset turnover of 3.3. How much must firm sales increase, other things being the same, for the goal to be achieved? (State your answer in both dollars and the corresponding percent increase in sales.) c. What was Smithers' operating return on assets last year? Assuming the firm's operating profit margin remains the same, what will the operating return on assets be next year if the total asset turnover goal is achieved? a. What was Smithers' total asset turnover ratio? The company's total asset turnover ratio is 2.30. (Round to one decimal place.) b. During the coming year, the company's president has set a goal of attaining a total asset turnover of 3.3. How much must firm sales increase, other things being the same, for the goal to be achieved? (State your answer in both dollars and the corresponding percent increase in sales.) The firm sales increase must be $10.58 million (Round to two decimal places.) or %. (Round to one decimal place.)
Chapter12: Balanced Scorecard And Other Performance Measures
Section: Chapter Questions
Problem 6EA: During the current year, Sokowski Manufacturing earned income of $350,000 from total sales of...
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Transcribed Image Text:(Profitability analysis) The R. M. Smithers Corporation earned an operating profit
margin of 10.2 percent based on sales of $10.6 million and total assets of $4.6 million
last year.
a. What was Smithers' total asset turnover ratio?
b. During the coming year, the company's president has set a goal of attaining a total
asset turnover of 3.3. How much must firm sales increase, other things being the same,
for the goal to be achieved? (State your answer in both dollars and the corresponding
percent increase in sales.)
c. What was Smithers' operating return on assets last year? Assuming the firm's
operating profit margin remains the same, what will the operating return on assets be next
year if the total asset turnover goal is achieved?
a. What was Smithers' total asset turnover ratio?
The company's total asset turnover ratio is 2.30. (Round to one decimal place.)
b. During the coming year, the company's president has set a goal of attaining a total
asset turnover of 3.3. How much must firm sales increase, other things being the same,
for the goal to be achieved? (State your answer in both dollars and the corresponding
percent increase in sales.)
The firm sales increase must be $10.58 million (Round to two decimal places.) or
%. (Round to one decimal place.)
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