Question

value: 20.00 points Billys Crystal Stores Inc. has assets of $5,360,000 and turns over its assets 2.3 times per year. Return on assets is 4 percent. What is the firms profit margin (return on sales)? (Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.) Profit margin

0 0
Add a comment Improve this question Transcribed image text
Answer #1

Sales = Assets × Total asset turnover = $5,360,000 × 2.3 = $12,328,000

Net income = Assets × Return on assets = $5,360,000 × 4% = $214,400

Profit margin = Net income / Sales = $214,400 / $12,328,000 = 1.74%

Add a comment
Know the answer?
Add Answer to:
value: 20.00 points Billy's Crystal Stores Inc. has assets of $5,360,000 and turns over its assets...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • Billy's Crystal Stores Inc. has assets of $5,160,000 and turms over its assets 2.1 times per...

    Billy's Crystal Stores Inc. has assets of $5,160,000 and turms over its assets 2.1 times per year. Return on assets is 9 percent What is the firm's profit margin (return on sales)? (Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.) Profit margin

  • Network Communications has total assets of $1,430,000 and current assets of $645,000. It turns over its...

    Network Communications has total assets of $1,430,000 and current assets of $645,000. It turns over its fixed assets two times a year. It has $376,000 of debt. Its return on sales is 5 percent.      What is its return on stockholders’ equity? (Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.) Return on stockholders' equity %

  • Jerry Rice and Grain Stores has $4,880,000 in yearly sales. The firm earns 3 percent on...

    Jerry Rice and Grain Stores has $4,880,000 in yearly sales. The firm earns 3 percent on each dollar of sales and turns over its assets 2.8 times per year. It has $196,000 in current liabilities and $359,000 in long-term liabilities. a. What is its return on stockholders' equity? (Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.) Return on stockholders' equity b. If the asset base remains the same as computed in part...

  • Jerry Rice and Grain Stores has $4,920,000 in yearly sales. The firm earns 4.5 percent on...

    Jerry Rice and Grain Stores has $4,920,000 in yearly sales. The firm earns 4.5 percent on each dollar of sales and turns over its assets 2.5 times per year. It has $127,000 in current liabilities and $327,000 in long-term liabilities. a. What is its return on stockholders' equity? (Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.) Return on stockholders' equity b. If the asset base remains the same as computed in part...

  • Jerry Rice and Grain Stores has $4,800,000 in yearly sales. The firm earns 3 percent on...

    Jerry Rice and Grain Stores has $4,800,000 in yearly sales. The firm earns 3 percent on each dollar of sales and turns over its assets 3.5 times per year. It has $120,000 in current liabilities and $310,000 in long-term liabilities.    a. What is its return on stockholders’ equity? (Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.)    Return on stockholders' equity 15.30 % CORRECT     b. If the asset base remains the...

  • Jerry Rice and Grain Stores has $4,000,000 in yearly sales. The firm earns 3.5 percent on...

    Jerry Rice and Grain Stores has $4,000,000 in yearly sales. The firm earns 3.5 percent on each dollar of sales and turns over its assets 4 times per year. It has $143,000 in current liabilities and $308,000 in long-term liabilities. a. What is its return on stockholders' equity? (Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.) Return on stockholders' equity b. If the asset base remains the same as computed in part...

  • 2.00 points Jerry Rice and Grain Stores has $4.910,000 in 360 000 in long serm Babaes...

    2.00 points Jerry Rice and Grain Stores has $4.910,000 in 360 000 in long serm Babaes yearly sakes The em eams 2 percent on each dollar of sales and turns over its assets 2 3 times per year it has $135,000 n current abs a. What is ts return on stockholders equity? (Do not round i ntermediate calculations. Input your answer as a percent rounded to 2 decimal places.) b. It the asset base nemains the same as computed in...

  • Check my won 2. Jerry Rice and Grain Stores has $4.240,000 in yearly sales. The firm...

    Check my won 2. Jerry Rice and Grain Stores has $4.240,000 in yearly sales. The firm earns 5 percent on each dollar of sales and turns over its assets 2.5 times per year. It has $141.000 in current liabilities and $397000 in long-term liabilities a. What is its return on stockholders' equity? (Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places) book Rebum on stockholders' equity Pri b. If the asset base remains...

  • Magic Flutes has total receivables of $4,000, which represent 20 days' sales. Total assets are $80,000....

    Magic Flutes has total receivables of $4,000, which represent 20 days' sales. Total assets are $80,000. The firm's operating profit margin is 5.50%. Assume a 365-day year. a. What is the firm's sales-to-assets ratio? (Round your answer to 2 decimal places.) Sales-to-asset ratio b. What is the firm's return on assets? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Return on assets %

  • 4. 2.77 points Easter Egg and Poultry Company has $1,810,000 in assets and $692,000 of debt....

    4. 2.77 points Easter Egg and Poultry Company has $1,810,000 in assets and $692,000 of debt. It reports net income of $161,000. a. What is the firm's return on assets? (Enter your answer as a percent rounded to 2 decimal places.) Return on asset b. What is its return on stockholders' equity? (Enter your answer as a percent rounded to 2 decimal places.) Return on equity % c. If the firm has an asset turnover ratio of 1.8 times, what...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT