Sub Station and Planet Sub reported the following selected financial data ($ in thousands). Sub Station’s business strategy is to sell the best tasting sandwich with the highest quality ingredients. Planet Sub’s business strategy is to sell the lowest cost sub on the planet. Sub Station Planet Sub Net sales $ 109,349 $ 63,171 Net income 27,022 4,592 Total assets, beginning 76,283 40,599 Total assets, ending 118,571 46,733 2. Calculate Planet Sub's return on assets, profit margin, and asset turnover ratio. (Enter your answers in thousands of dollars. (i.e. 123,000 should be entered as 123).) Return on Assets Choose Numerator ÷ Choose Denominator = Return on Assets ÷ = Return on assets ÷ = Profit Margin Choose Numerator ÷ Choose Denominator = Profit Margin ÷ = Profit Margin ÷ = Asset Turnover Choose Numerator ÷ Choose Denominator = Asset Turnover ÷ = Asset Turnover ÷ = times
Sub Station and Planet Sub reported the following selected financial data ($ in thousands). Sub Station’s business strategy is to sell the best tasting sandwich with the highest quality ingredients. Planet Sub’s business strategy is to sell the lowest cost sub on the planet. Sub Station Planet Sub Net sales $ 109,349 $ 63,171 Net income 27,022 4,592 Total assets, beginning 76,283 40,599 Total assets, ending 118,571 46,733 2. Calculate Planet Sub's return on assets, profit margin, and asset turnover ratio. (Enter your answers in thousands of dollars. (i.e. 123,000 should be entered as 123).) Return on Assets Choose Numerator ÷ Choose Denominator = Return on Assets ÷ = Return on assets ÷ = Profit Margin Choose Numerator ÷ Choose Denominator = Profit Margin ÷ = Profit Margin ÷ = Asset Turnover Choose Numerator ÷ Choose Denominator = Asset Turnover ÷ = Asset Turnover ÷ = times
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Sub Station and Planet Sub reported the following selected financial data ($ in thousands). Sub Station’s business strategy is to sell the best tasting sandwich with the highest quality ingredients. Planet Sub’s business strategy is to sell the lowest cost sub on the planet.
| Sub Station | Planet Sub | |||||||
| Net sales | $ | 109,349 | $ | 63,171 | ||||
| Net income | 27,022 | 4,592 | ||||||
| Total assets, beginning | 76,283 | 40,599 | ||||||
| Total assets, ending | 118,571 | 46,733 | ||||||
2. Calculate Planet Sub's return on assets, profit margin, and asset turnover ratio. (Enter your answers in thousands of dollars. (i.e. 123,000 should be entered as 123).)
|
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