Homework Answers
Solution to Exercise 2-8
Sales Revenue
Total Asset Turnover = Sales Revenue / Total Assets
2 = Sales Revenue / $150,000
Sales Revenue = $150,000 x 2
Sales Revenue = $300,000
Net Income
Return on Assets = Net Income / Total Assets
0.06 = Net Income / $150,000
Net Income = $150,000 x 0.06
Net Income = $9,000
Net Profit Margin
Net Profit Margin = (Net Income / Sales Revenue) x 100
= ($9,000 / $300,000) x 100
= 3%
Solution to Exercise 2-6
Seems the question is not complete and the requirement is missing, therefore, I’ve done with the Exercise 2-8
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