Homework Answers
Return on aseets = sales / Net assets
given return on assets is 2.4, therefore Net assets = sales / Return on assets
= 450,000 / 2.4 = 187,500
therefore Capital = 187,500
given Return on capital is 8%
Return on capital = Net profit / Capital employed
So, Net profit = Capital employed * Return on capital
= 187,500 * 8%
= 15,000
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