Brief Exercise 13-13 Staples, Inc. is one of the largest suppliers of office pro

Question

Brief Exercise 13-13 Staples, Inc. is one of the largest suppliers of office products in the United States. Suppose it had net income of $651 million and sales of $23,401 million in 2017. Its total assets were $13,301 million at the beginning of the year and $14,151 million at the end of the year. What is Staples, Inc.’s (a) asset turnover and (b) profit margin? (Round asset turnover to 2 decimal places, e.g. 1.25 and profit margin to 1 decimal place, e.g. 2.5%.)
(a) Asset turnover
times (b) Profit margin
%
Brief Exercise 13-13 Staples, Inc. is one of the largest suppliers of office products in the United States. Suppose it had net income of $651 million and sales of $23,401 million in 2017. Its total assets were $13,301 million at the beginning of the year and $14,151 million at the end of the year. What is Staples, Inc.'s (a) asset turnover and (b) profit margin? (Round asset turnover to 2 decimal places, e.g. 1.25 and profit margin to 1 decimal place .g.2.5%.) times a) Asset turnover b) Profit margin lick if you would like to Show Work for this question: 9pen Show Work

Explanation / Answer

Asset turnover=Net Sales/Average Total Asset

= 23401/13726* = 1.70 times

*(13301+14151)/2 = 13726

Profit margin ratio=Net Income/Net Sales

= (651/23401)*100 = 2.8%

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