Calculate the profit margin (Accounting) Selected data from Marvella Industries are presented below:• Total assets: $1,900,000• Average total assets: $2,300,000• Net income: $420,000•Net sales: $1,650,000Average common stockholders' equity: $1,200,000a) Calculate the profit margin.b) Compute the asset turnover.

a) Profit MarginThe profit margin is calculated using the formula:Profit Margin = (Net Income / Net…

Answered: Selected data from Marvella Industries…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Problem 1Q

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The balance sheet and income statement for the J. P. Robard Mfg. Company are as follows: LOADING... . Calculate the following ratios: Current ratio Times interest earned Inventory turnover Total asset turnover Operating profit margin Operating return on assets Debt ratio Average collection period Fixed asset turnover Return on equity J. P. Robard Mfg., Inc. Balance Sheet ($000) Cash $500 Accounts receivable 1,900 Inventories 1,020 Current assets $3,420 Net fixed assets 4,540 Total assets $7,960 Accounts payable $1,150 Accrued expenses 570 Short-term notes payable 260 Current liabilities $1,980 Long-term debt 1,910 Owners' equity 4,070 Total liabilities and owners' equity $7,960 (Click on the icon in order to copy its contents into a spreadsheet.) J. P. Robard Mfg., Inc. Income Statement ($000) Net sales (all credit) $8,040 Cost of goods…
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Selected data from Marvella Industries are presented below: • Total assets: $1,900,000 • Average total assets: $2,300,000 • Net income: $420,000 • Net sales: $1,650,000 Average common stockholders' equity: $1,200,000 a) Calculate the profit margin. b) Compute the asset turnover.