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The following information were taken from the 2019 balance sheet and income statement for WAY retailer: Net sales OR 1,937.80 Cost of goods sold OR 1,151.70 Operating expenses OR 447.20 Inventory OR 186.10 Accounts receivable OR 78.00 Other current assets OR 422.70 Equipment OR 400.00 Distribution centers OR 140.00 Long-term liabilities OR 320.00 Calculate (you need to show your calculations; not acceptable to show only a final number): 1. Asset turnover What does this number mean? ______________________________________ 2. Return on Asset What does this number mean? ______________________________________ 3. Net profit margin What does this number mean? ______________________________________

The following information were taken from the 2019 balance sheet and income statement for WAY retailer: Net sales OR 1,937.80 Cost of goods sold OR 1,151.70 Operating expenses OR 447.20 Inventory OR 186.10 Accounts receivable OR 78.00 Other current assets OR 422.70 Equipment OR 400.00 Distribution centers OR 140.00 Long-term liabilities OR 320.00 Calculate (you need to show your calculations; not acceptable to show only a final number): 1. Asset turnover What does this number mean? ______________________________________ 2. Return on Asset What does this number mean? ______________________________________ 3. Net profit margin What does this number mean? ______________________________________

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The following information were taken from the 2019 balance sheet and income statement for WAY retailer:
Net sales
OR 1,937.80
Cost of goods sold
OR 1,151.70
Operating expenses
OR 447.20
Inventory
OR 186.10
Accounts receivable
OR 78.00
Other current assets
OR 422.70
Equipment
OR 400.00
Distribution centers
OR 140.00
Long-term liabilities
OR 320.00
Calculate (you need to show your calculations; not acceptable to show only a final number):
1. Asset turnover
What does this number mean? ______________________________________

2. Return on Asset

What does this number mean? ______________________________________

3. Net profit margin

What does this number mean? ______________________________________

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