Ratio analysis is an analysis of information available in the financial statements of the company, which is carried out to evaluate the performance and compare it with the industry standards. Given: (in millions) 31-Dec-14 31-Dec-13 Total assets 910.4 888.4 Total liabilities 219.3 208.1 Net sales 539.9 539.6 Net income 63.2 60.8 To compute: The following ratios : (a) Asset turnover. (b) Return on assets. (c) Profit margin on sales. (d) How can the asset turnover be used to compute the return on assets?

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Answer 1

Question

Chapter 11, Problem 24E

To determine

Introduction: Ratio analysis is an analysis of information available in the financial statements of the company, which is carried out to evaluate the performance and compare it with the industry standards.

Given:

(in millions)

31-Dec-14

31-Dec-13

Total assets

910.4

888.4

Total liabilities

219.3

208.1

Net sales

539.9

539.6

Net income

63.2

60.8

To compute: The following ratios :

(a) Asset turnover.

(b) Return on assets.

(c) Profit margin on sales.

(d) How can the asset turnover be used to compute the return on assets?

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Answer 2

Question

Chapter 11, Problem 24E

To determine

Introduction: Ratio analysis is an analysis of information available in the financial statements of the company, which is carried out to evaluate the performance and compare it with the industry standards.

Given:

(in millions)

31-Dec-14

31-Dec-13

Total assets

910.4

888.4

Total liabilities

219.3

208.1

Net sales

539.9

539.6

Net income

63.2

60.8

To compute: The following ratios :

(a) Asset turnover.

(b) Return on assets.

(c) Profit margin on sales.

(d) How can the asset turnover be used to compute the return on assets?

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 11, Problem 24E

To determine

Introduction: Ratio analysis is an analysis of information available in the financial statements of the company, which is carried out to evaluate the performance and compare it with the industry standards.

Given:

(in millions)

31-Dec-14

31-Dec-13

Total assets

910.4

888.4

Total liabilities

219.3

208.1

Net sales

539.9

539.6

Net income

63.2

60.8

To compute: The following ratios :

(a) Asset turnover.

(b) Return on assets.

(c) Profit margin on sales.

(d) How can the asset turnover be used to compute the return on assets?

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 11, Problem 24E

To determine

Introduction: Ratio analysis is an analysis of information available in the financial statements of the company, which is carried out to evaluate the performance and compare it with the industry standards.

Given:

(in millions)

31-Dec-14

31-Dec-13

Total assets

910.4

888.4

Total liabilities

219.3

208.1

Net sales

539.9

539.6

Net income

63.2

60.8

To compute: The following ratios :

(a) Asset turnover.

(b) Return on assets.

(c) Profit margin on sales.

(d) How can the asset turnover be used to compute the return on assets?

Expert Solution & Answer

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Answer 5

Chapter 11, Problem 24E

To determine

Introduction: Ratio analysis is an analysis of information available in the financial statements of the company, which is carried out to evaluate the performance and compare it with the industry standards.

Given:

(in millions)

31-Dec-14

31-Dec-13

Total assets

910.4

888.4

Total liabilities

219.3

208.1

Net sales

539.9

539.6

Net income

63.2

60.8

To compute: The following ratios :

(a) Asset turnover.

(b) Return on assets.

(c) Profit margin on sales.

(d) How can the asset turnover be used to compute the return on assets?

Answer 6

Chapter 11, Problem 24E

To determine

Introduction: Ratio analysis is an analysis of information available in the financial statements of the company, which is carried out to evaluate the performance and compare it with the industry standards.

Given:

(in millions)

31-Dec-14

31-Dec-13

Total assets

910.4

888.4

Total liabilities

219.3

208.1

Net sales

539.9

539.6

Net income

63.2

60.8

To compute: The following ratios :

(a) Asset turnover.

(b) Return on assets.

(c) Profit margin on sales.

(d) How can the asset turnover be used to compute the return on assets?

Answer 7

Chapter 11, Problem 24E

To determine

Introduction: Ratio analysis is an analysis of information available in the financial statements of the company, which is carried out to evaluate the performance and compare it with the industry standards.

Given:

(in millions)

31-Dec-14

31-Dec-13

Total assets

910.4

888.4

Total liabilities

219.3

208.1

Net sales

539.9

539.6

Net income

63.2

60.8

To compute: The following ratios :

(a) Asset turnover.

(b) Return on assets.

(c) Profit margin on sales.

(d) How can the asset turnover be used to compute the return on assets?

Answer 8

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Answer 9

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Answer 10

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Answer 11

Ch. 11 - Prob. 1Q Ch. 11 - 2. Identify the factors that are relevant in...Ch. 11 - Prob. 3Q Ch. 11 - Prob. 4Q Ch. 11 - Prob. 5Q Ch. 11 - Prob. 6Q Ch. 11 - 7. What basic questions must be answered before...Ch. 11 - Prob. 8Q Ch. 11 - Prob. 9Q Ch. 11 - 10. What are the major factors considered in...

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Chapter 11 Solutions

(in millions)	31-Dec-14	31-Dec-13
Total assets	910.4	888.4
Total liabilities	219.3	208.1
Net sales	539.9	539.6
Net income	63.2	60.8