Beckinsale, Inc., has a profit margin of 5.8 percent on sales of $16,000,000. If the firmhas debt of $7,900,000 and total assets of $14,000,000.Required:What is the firm's ROA? (Do not round intermediate calculations. Round your answer to2 decimal places (e.g., 32.16).)ROA

Calculation of Firm’s ROA:The firm’s ROA is 6.63%.Excel Spreadsheet:

Answered: Beckinsale, Inc., has a profit margin…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter3: Evaluation Of Financial Performance

Section: Chapter Questions

Problem 13P

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Beckinsale, Inc., has a profit margin of 5.8 percent on sales of $16,000,000. If the firm has debt of $7,900,000 and total assets of $14,000,000. Required: What is the firm's ROA? (Do not round intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).) ROA