Carla Vista Co. reports the following information (in millions) during a recent year: net sales, $10,125.3; net earnings, $320.8; total assets, ending, $4,550.0; and total assets, beginning, $5,475.0.(a) Calculate the (1) return on assets, (2) asset turnover, and (3) profit margin. (Round answers to 1 decimal place, e.g. 6.2% and 6.2.)1. Return on assets enter the return on assets in percentages rounded to 1 decimal places%2. Asset turnover enter the asset turnover rounded to 1 decimal places times3. Profit margin enter the profit margin in percentages rounded to 1 decimal places%

Step 1: Compute the average total assets: Step 2: Compute the return on assets: Thus, the return…

Answered: Carla Vista Co. reports the following…

Financial Accounting

15th Edition

ISBN:9781337272124

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter3: The Adjusting Process

Section: Chapter Questions

Problem 29E

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Carla Vista Co. reports the following information (in millions) during a recent year: net sales, $10,125.3; net earnings, $320.8; total assets, ending, $4,550.0; and total assets, beginning, $5,475.0.

(a) Calculate the (1) return on assets, (2) asset turnover, and (3) profit margin. (Round answers to 1 decimal place, e.g. 6.2% and 6.2.)

1.	Return on assets	enter the return on assets in percentages rounded to 1 decimal places	%
2.	Asset turnover	enter the asset turnover rounded to 1 decimal places	times
3.	Profit margin	enter the profit margin in percentages rounded to 1 decimal places	%

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