Question

Staples, Inc. is one of the largest suppliers of office products in the United States. Suppose it had net income of $738.72 million and sales of $23,085.0 million in 2019. Its total assets were $12,000 million at the beginning of the year and $15,000 million at the end of the year. What is Staples, Inc.’s (a) asset turnover and (b) profit margin?

CALCULATOR FULL SCREEN PRINTER VERSION BACK NEXT Brief Exercise 13-13 * Your answer is incorrect. Try again. Staples, Inc. is one of the largest suppliers of office products in the United States. Suppose it had net income of $738.72 million and sales of $23,085.0 million in 2019. Its total assets were $12,000 million at the beginning of the year and $15,000 million at the end of the year. What is Staples, Inc.'s (a) asset turnover and (b) profit margin? (Round asset turnover to 2 decimal places, e.g. 1.25 and profit margin to 1 decimal place, e.g. 2.5%.) of the year. What is Staples, inc: s*a* asset turnover (a) Asset turnover 1.21 times (b) Profit margin

Answer 1

Answer:

(a) Asset Turnover	1.71 times
(b) Profit Margin	3.2%

Explanation:

(a) Asset Turnover = Net sale / Average Total Asset

Average Total Asset = (Beginning Total Asset + Ending Total Asset) / 2

= ($12000 million + $15000 million) / 2

= $13500 million

Asset Turnover = $23085 million / $13500 million

= 1.71 times.

(b)

Profit Margin = (Net income / Net sale)*100

= ($738.72 million / $23085 million)*100

= 3.2%