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Torrid Romance Publishers has total receivables of $2,300.00, which represents 24.00 days’ sales. Total assets are $7,197.36. The firm’s operating profit margin is 4.53%. Find the firm’s asset turnover ratio and ROA. (Use 365 days in a year. Do not round intermediate calculations. Round your answers to 2 decimal places.)         Asset turnover ratio          ROA  %

Torrid Romance Publishers has total receivables of $2,300.00, which represents 24.00 days’ sales. Total assets are $7,197.36. The firm’s operating profit margin is 4.53%. Find the firm’s asset turnover ratio and ROA. (Use 365 days in a year. Do not round intermediate calculations. Round your answers to 2 decimal places.)         Asset turnover ratio          ROA  %

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Torrid Romance Publishers has total receivables of $2,300.00, which represents 24.00 days’ sales. Total assets are $7,197.36. The firm’s operating profit margin is 4.53%. Find the firm’s asset turnover ratio and ROA. (Use 365 days in a year. Do not round intermediate calculations. Round your answers to 2 decimal places.)


 

   
  Asset turnover ratio       
  ROA  %  
 
Expert Solution
Step 1 - Information

Total receivable = $2300.00

Average receivable period = 24 days

Turnover = 2300/(365/24) = 2300*15.2083333333333 = $34979.1666666666

Profit margin = 4.53%

Total asset = $7,197.36

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