Red Barn Dress Shops, Inc. can open a new store that will do an annual sales volume of $960,000. It will turn over its assets 2.4 times per year. The profit margin on sales will be 7 percent. What would net income and return on assets (investment) be for the year?

Entrepreneurial Finance
6th Edition
ISBN:9781337635653
Author:Leach
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Chapter13: Other Financing Alternatives
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Give true answer this general accounting question

Red Barn Dress Shops, Inc. can open a new
store that will do an annual sales volume of
$960,000. It will turn over its assets 2.4 times per
year. The profit margin on sales will be 7 percent.
What would net income and return on assets
(investment) be for the year?
Transcribed Image Text:Red Barn Dress Shops, Inc. can open a new store that will do an annual sales volume of $960,000. It will turn over its assets 2.4 times per year. The profit margin on sales will be 7 percent. What would net income and return on assets (investment) be for the year?
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