edugen wileyplus.com/edugen ni Return to Blackboard LUS ng, 16e 0, Intern Announ
ID: 2543319 • Letter: E
Question
edugen wileyplus.com/edugen ni Return to Blackboard LUS ng, 16e 0, Intern Announcements CALC Exercise 11-24 The 2014 Annual Report of Tootsie Roll Industries contains the following information December 31, 2014 December 31, 2013 (in millions) Total assets Total liabilities Net sales Net income $910.4 219.3 539.9 63.2 $888.4 208.1 539.6 60.8 Compute the following ratios for Tootsie Roll for 2014 ] times Asset turnover (Round answer to 4 decimal places, e.g. 0.8512 times.) Return on assets (Round answer to 2 decimal places, eg. 4.87%.) Profit margin on sales (Round answer to 3 decimal places, e.g. 4.87296-) (a) (b) (c) Question Attempts: O of 3 usedExplanation / Answer
Answer (a)
Average Total assets = $910.4 + $888.4 / 2 = $899.4 million
Asset turnover = Net Sales / Average Total assets
= $539.9 / $899.4 = 0.6002 times
Answer (b)
Return on Assets = (Net Income / Average Total assets) * 100
= ($63.20 / $899.4) * 100 = 7.03 %
Answer (c)
Profit Margin on sales = (Net Income / Net Sales) * 100
= ($63.20 / $539.9 ) * 100 = 11.71 %
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