Firm D has net income of $87,000, sales of $2,282,000, and average total assets

Question

Firm D has net income of $87,000, sales of $2,282,000, and average total assets of $1,399,500. Calculate the firm's margin, turnover, and ROI. (Omit the "%" sign in your response.)
  Margin   %   Turnover         ROI   % (b) Firm E has net income of $154,500, sales of $2,545,000, and ROI of 18%. Calculate the firm's turnover and average total assets. (Omit the "$" sign in your response.)
  Turnover $      Average total assets    (c) Firm F has ROI of 12.6%, average total assets of $1,739,159, and turnover of 1.2. Calculate the firm's sales, margin, and net income. (Round your answers to the nearest whole numbers. Omit the "$" and "%" signs in your response.)
  Net income $          Sales $          Margin   %
Firm D has net income of $87,000, sales of $2,282,000, and average total assets of $1,399,500. Calculate the firm's margin, turnover, and ROI. (Omit the "%" sign in your response.)

Explanation / Answer

a)

Turnover = $2,282,000 / $1399500 = 1.63

ROI = 87000 * 100 / 1399500 = 6.22%

b)

Avergae total assets = 154,500 / 0.18 = $858,333.33

Turnover = $2,545,000 / $858,333.33 = 2.97

c)

Net income = 1,739,159 * 0.126 = $219,134.03

Sales = 1.2 * 1739159 = $2,086,990.80

Margin = 219134.03 * 100 / 2086990.80 = 10.5%

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