a) | Profit Margin = Net Income / Sales | ||
= $85248/710400 | |||
=12 % | |||
b) | Assets Turnover Ratio = Sales / average Assets | ||
= $710400/296000 | |||
=2.4 times | |||
c) | Return On Assets = Profit margin * asset turnover ratio | ||
=12%*2.4 | |||
=28.8% |
Briggs Company has operating income of $85,248, invested assets of $296,000, and sales of $710,400. Use...
Profit Margin, Investment Turnover, and ROI Briggs Company has operating income of $17,982, invested assets of $74,000, and sales of $199,800. Use the DuPont formula to compute the return on investment. If required, round your answers to two decimal places. a. Profit margin b. Investment turnover c. Return on investment
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