Required: Calculate the return on assets, the profit margin, and the asset turnover ratio for Billy's BBQ.
Required: Calculate the return on assets, the profit margin, and the asset turnover ratio for Billy's BBQ.
Chapter3: Evaluation Of Financial Performance
Section: Chapter Questions
Problem 19P
Related questions
Question
Practice Pack
fill out the missing blank
Billy’s BBQ reported sales of $750,000 and net income of $29,500. Billy’s also reported ending total assets of $497,000 and beginning total assets of $390,000.
Required:
Calculate the return on assets, the profit margin, and the asset turnover ratio for Billy's BBQ.
![Return on Assets
Choose Numerator
Choose Denominator
Return on Assets
Net income
+ Average total assets
Return on Assets
$
29,500 +
Profit Margin
Choose Numerator
Choose Denominator
Profit Margin
Net income
+ Sales
Profit Margin
$
29,500 +
$
750,000
3.9%
Asset Turnover Ratio
Choose Numerator
Choose Denominator
Asset Turnover
Sales
+ [Average total assets
Asset Turnover
$
750,000 +
0 times
%3D
II
II
II
II](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb55c1690-4c18-4793-9129-6cd04f8390e3%2Fbe6198e9-7ec2-4b3c-bd2c-48a40c03ce8f%2Fc4y59ef_processed.png&w=3840&q=75)
Transcribed Image Text:Return on Assets
Choose Numerator
Choose Denominator
Return on Assets
Net income
+ Average total assets
Return on Assets
$
29,500 +
Profit Margin
Choose Numerator
Choose Denominator
Profit Margin
Net income
+ Sales
Profit Margin
$
29,500 +
$
750,000
3.9%
Asset Turnover Ratio
Choose Numerator
Choose Denominator
Asset Turnover
Sales
+ [Average total assets
Asset Turnover
$
750,000 +
0 times
%3D
II
II
II
II
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Includes step-by-step video
Trending now
This is a popular solution!
Learn your way
Includes step-by-step video
Step by step
Solved in 4 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
![EBK CONTEMPORARY FINANCIAL MANAGEMENT](https://www.bartleby.com/isbn_cover_images/9781337514835/9781337514835_smallCoverImage.jpg)
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT
![Fundamentals of Financial Management, Concise Edi…](https://www.bartleby.com/isbn_cover_images/9781305635937/9781305635937_smallCoverImage.gif)
Fundamentals of Financial Management, Concise Edi…
Finance
ISBN:
9781305635937
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
![Cornerstones of Financial Accounting](https://www.bartleby.com/isbn_cover_images/9781337690881/9781337690881_smallCoverImage.gif)
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
![EBK CONTEMPORARY FINANCIAL MANAGEMENT](https://www.bartleby.com/isbn_cover_images/9781337514835/9781337514835_smallCoverImage.jpg)
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT
![Fundamentals of Financial Management, Concise Edi…](https://www.bartleby.com/isbn_cover_images/9781305635937/9781305635937_smallCoverImage.gif)
Fundamentals of Financial Management, Concise Edi…
Finance
ISBN:
9781305635937
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
![Cornerstones of Financial Accounting](https://www.bartleby.com/isbn_cover_images/9781337690881/9781337690881_smallCoverImage.gif)
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
![Survey of Accounting (Accounting I)](https://www.bartleby.com/isbn_cover_images/9781305961883/9781305961883_smallCoverImage.gif)
Survey of Accounting (Accounting I)
Accounting
ISBN:
9781305961883
Author:
Carl Warren
Publisher:
Cengage Learning