Question

Required:

1. Firm A has a margin of 11%, sales of $560,000, and ROI of 18%. Calculate the firm's average total assets. (Round "Turnover" to 1 decimal place.)
2. Firm B has net income of $74,000, turnover of 1.20, and average total assets of $900,000. Calculate the firm's sales, margin, and ROI. (Round "Margin" and "ROI" answers to 1 decimal place.)
3. Firm C has net income of $134,000, turnover of 2.01, and ROI of 23.40%. Calculate the firm's margin, sales, and average total assets. (Round "Margin" answer to 1 decimal place and use the rounded answer for the subsequent computations.)

Answer 1

Answers

--With working and calculation

Firm A
A	Sales	$560,000
B	Margin	11%
C = A x B	Net Income	$61,600
D	ROI	18%
E = D/B	Turnover ratio	1.6
F = A/E	Average Total Assets	$350,000	Answer
Firm B
A	Net Income	$74,000
B	Turnover	1.2
C	Average Total Assets	$900,000
D = B x C	Sales	$1,080,000	Answer
E = A/D	Margin	6.9%	Answer
F = B x E	ROI	8.3%	Answer
Firm C
A	Net Income	$134,000
B	Turnover	2.01
C	ROI	23.4%
D = C/B	Margin	11.6%	Answer
F = A/D	Sales	$1,155,172	Answer
G = F/B	Average Total Assets	$574,712	Answer