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Brief Exercise 222 Selected data from the Florida Fruit Company are presented below: Total assets Average total assets Net in
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Answer #1

Profit Margin

Profit Margin = [Net Income / Net Sales] x 100

= [$175,000 / $1,300,000] x 100

= 13.5%

Asset Turnover

Asset Turnover = Total Sales / Average total assets

= $1,300,000 / $1,850,000

= 0.70 Times

Return on asset

Return on asset = [Net Income / Average total assets] x 100

= [$175,000 / $1,850,000] x 100

= 9.5%

Return on common stockholders equity

Return on common stockholders equity = [Net Income / Average common stockholders equity] x 100

= [$175,000 / $1,000,000] x 100

= $17.5%

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