Question

The ROA and profit margin ratio for Mr. Husker’s Restaurant Corp. were 14.50% and 22.40% in...

The ROA and profit margin ratio for Mr. Husker’s Restaurant Corp. were 14.50% and 22.40% in 2012. If the average total asset value of this firm was $30 million at the end of 2012, what is the total revenue generated in 2012?

Group of answer choices

$18,717,544

$18,312,718

$20,415,690

$19,419,643

0 0
Add a comment Improve this question Transcribed image text
Answer #1

OPTION: 19,419,643

EXPLANATION:

ROA = net income/average total assets

profit margin ratio = net income/total revenue

therefore,

In case of ROA

net income = ROA x average total assets

= 14.5% x $30,000,000

= $4,350,000

Let put this value of net income in formula of profit margin ratio

Total revenue = net income/profit margin ratio

= $4,350,000/22.40%

= $19,419,643

Add a comment
Know the answer?
Add Answer to:
The ROA and profit margin ratio for Mr. Husker’s Restaurant Corp. were 14.50% and 22.40% in...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • Stallone’s Italian Restaurant announced an ROA of 9.80% and profit margin ratio of 19.50% in 2012. This company had a to...

    Stallone’s Italian Restaurant announced an ROA of 9.80% and profit margin ratio of 19.50% in 2012. This company had a total of $20 million total assets at the end of 2012. Based on the information given, calculate the total revenue generated in 2012 for Stallone’s Italian Restaurant.

  • Mr. Husker's Tuxedos Corp. ended the year 2018 with an average collection period of 33 days....

    Mr. Husker's Tuxedos Corp. ended the year 2018 with an average collection period of 33 days. The firm's credit sales for 2018 were $56.2 million. What is the year-end 2018 balance in accounts receivable for Mr. Husker's Tuxedos? (Enter your answer in dollars not in millions.) Accounts receivable Last year, Hassan's Madhatter, Inc. had an ROA of 6.2 percent, a profit margin of 10.25 percent, and sales of $20 million. Calculate Hassan's Madhatter's total assets. (Enter your answer in dollars,...

  • 1.What is the return on assets (ROA) for a firm that has a debt ratio of...

    1.What is the return on assets (ROA) for a firm that has a debt ratio of 0.65, a net profit margin of 6.5%, sales of $740,000, and a total asset turnover of 4? 2. Thompson Corp has a NPM of 11.5%. They reported earnings after tax of $632,500. If they had net fixed assets of $1,500,000 and current assets of $750,000, what are their total asset turnover ratios?

  • The return on assets (ROA) model measures: Group of answer choices net profit divided by total...

    The return on assets (ROA) model measures: Group of answer choices net profit divided by total assets multiplied by the asset turnover net profit margin times the equity multiplier net profit margin times asset turnover revenues divided by net profit times the asset turnover

  • Compute and Interpret ROA, Profit Margin, and Asset Turnover of Competitors Selected balance sheet and income...

    Compute and Interpret ROA, Profit Margin, and Asset Turnover of Competitors Selected balance sheet and income statement information for McDonald's Corporation and Yumi Brands, Inc., follows (in millions). Sales Revenue Interest Expense Net Income Average Total Assets McDonalds $27,441 $571 $4,758 $35,454 Yum! Brands 13,279 1,021 8,520 a. Compute the return on assets (ROA) for each company. Assume a tax rate of 35%. Do not round until your final answer. Round answer to one decimal place (i.e., 0.2568 = 25.7%)....

  • Please show work so I can follow the process. Compute and Interpret ROA, Profit Margin, and...

    Please show work so I can follow the process. Compute and Interpret ROA, Profit Margin, and Asset Turnover of Competitors Selected balance sheet and income statement information for McDonald's Corporation and Yum! Brands, Inc., follows (in millions). McDonalds Yum! Brands Sales Revenue Interest Expense Net Income Average Total Assets $27,441 $571 $4,758 $35,454 13,279 130 1,021 8,520 a. Compute the return on assets (ROA) for each company. Assume a tax rate of 35%. Do not round until your final answer....

  • If a company's profit margin is 4 % and its total asset turnover ratio is 2.8,...

    If a company's profit margin is 4 % and its total asset turnover ratio is 2.8, what is its return on assets (ROA)? Enter your answers as a percentage rounded to 2 decimal places. For example, enter 8.43 (%) instead of 0.0843. Your Answer: Answer

  • Calculate the Following Ratios Net Interest Margin Profit Margin ROE ROA Spread Ratio Asset Utilization Ratio...

    Calculate the Following Ratios Net Interest Margin Profit Margin ROE ROA Spread Ratio Asset Utilization Ratio Equity Multiplier Provision for loan loss ratio Boca State Bank Income Statement Month Ending July 31, 2020 Boca State Bank Balance Sheet July 31, 2020 Income Amount($) $9,000 $4,000 Interest on fees and loans Interest on investment securities interest on reverse repos interest on deposits in other banks Total Income Assets Cash and due from banks Investment securities Reverse Repos Loans Fixed asset other...

  • 5.22. Compute ROA, Profit Margin and Asset Turnover for Competitors Selected balance sheet and income statement...

    5.22. Compute ROA, Profit Margin and Asset Turnover for Competitors Selected balance sheet and income statement information from Urban Outfitters, Inc. and TJX Companies, clothing retailers in the high-end and value-priced segments, respectively, follows. 2014 Earnings 2014 Without Interest 2014 Total 2013 Total Company ($ millions) Sales Expense (EWI) Assets Assets Urban Outfitters ....... ....... $ 3,323 $ 232.4 $ 1,889 $ 2,221 TJX Companies ... ........ 29,078 2,241.0 11,128 10,201 a. Compute the 2014 return on assets (ROA) for...

  • Compute and Interpret ROA, Profit Margin, and Asset Turnover of Competitors Selected balance sheet and income...

    Compute and Interpret ROA, Profit Margin, and Asset Turnover of Competitors Selected balance sheet and income statement information for McDonald's Corporation and Yum! Brands, Inc., follows (in millions). Sales Revenue Interest Expense Net Income Average Total Assets McDonalds $32,853 $671 $5,758 $46,995 Yum! Brands 15,031 180 1,196 10,375 a. Compute the return on assets (ROA) for each company. Assume a tax rate of 35%. Do not round until your final answer. Round answer to one decimal place (i.e., 0.2568 =...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT