cesIncome statementSales revenueCost of goods soldGross profitOperating expenses and interest expensePretax incomeIncome taxNet incomeBalance sheetCashAccounts receivable (net)InventoryProperty and equipment (net)Total assetsCurrent liabilities (no interest)Long-term liabilities (interest rate: 12%)Common stock ($5 par value, 7,500 shares outstanding)Retained earningsTotal liabilities and stockholders' equityReturn on assetsTotal asset turnoverNet profit margin%Year 2%$ 220,000119,500100,50059,00041,50011,000$ 30,500$7,00015,50043,00049,500$ 115,000$ 17,50046,50037,500Year 11$ 174,500103,00071,50054,50017,0005,500$ 11,5002. Compute return on assets, total asset turnover, and the net profit margin for Year 2.Note: Round your answers to 2 decimal places.$ 8,50019,50038,40041,000$ 107,400$ 18,50046,50037,5004,90013,500$ 115,000 $ 107,400

Return on Assets = Net Income/Total Assets*100Return on Assets = 30,500/115,000*100Return on Assets…

Answered: Return on assets Total asset turnover…

Business

Finance

Return on assets Total asset turnover Net profit margin % %

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter16: Financial Statement Analysis

Section: Chapter Questions

Problem 4PB

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