Intermediate Accounting (16th Edition)

Published by Wiley
ISBN 10: 1118743202
ISBN 13: 978-1-11874-320-1

Chapter 11 - Depreciation, Impairments, and Depletion - Review and Practice - Brief Exercises - Page 584: BE11-10

Answer

(A) Assets turnover= Net sales/Average total assets 8268 / ((8,113+ 8,323)/2) = 1.0061 times (B)Profit margin on sales (807/8268) *100 = 9.8% (C)Return on assets (1) 1.0061*9.8% = 9.8% Return on assets (2) 807/ ((8,113+ 8,323)/2) = 9.8%

Work Step by Step

As summarized above.
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