× O Establish the Work of Our Har x) y] WileyPLUS x www.espn.com s: ledugen.wile
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× O Establish the Work of Our Har x) y] WileyPLUS x www.espn.com s: ledugen.wileyplus.com/edugen/student/mainfr.uni Kieso, Intermediate Accounting, 16e Gradebook ORION Downloadable eTextbook ment Exercise 11-24 The 2014 Annual Report of Tootsie Rolt Industries contains the following information, December 31, December 31, 2014 2013 (in millions) Total iabwies Net income 888.4 208.1 39.6 60.8 $910.4 219.3 Total assets 539.9 63.2 Net sale Compute the following ratios for Tootsie Roll for 201 (a) Asset turnover (Round answer to 4 decimal places,.9.0.8532 times.) Retum, on assets (Round answer to 2 drinnal places, ee. 4-, (c) Profit margin on sales (Round answer to J decimal places, e.g. 4.872%.) Clich if you would like to Show go 4Explanation / Answer
Answer a.
Average Assets = ($910.40 + $888.40) / 2
Average Assets = $899.40
Assets Turnover = Sales / Average Assets
Assets Turnover = $539.90 / $899.40
Assets Turnover = 0.6003
Answer b.
Average Assets = ($910.40 + $888.40) / 2
Average Assets = $899.40
Return in Assets = Net Income / Average Assets
Return in Assets = $63.20 / $899.40
Return in Assets = 7.11%
Answer c.
Profit Margin on Sales = Net Income / Net Sales
Profit Margin on Sales = $63.20 / $539.90
Profit Margin on Sales = 11.706%
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