oods, Inc. has a total assets turnover of 0.30 and a profit margin of 10 percent. The president is unhappy with the current return on assets, and he thinks it could be doubled. This could be accomplished (1) by increasing the profit margin to 15 percent and (2) by increasing the total assets turnover. What new asset turnover ratio, along with the 15 percent profit margin, is required to double the return on assets? a. 35% b. 45%

Q: Last year Wei Guan Inc. had $625 million of sales, and it had $270 million of fixed assets that were…

A: Here, Sales is $625 millions Fixed Assets is $270 millions Capacity Utilization is 65%

Q: Consider a retail firm with a net profit margin of 3.94%, a total asset turnover of 1.84, total…

A:

Q: JC Goods, Inc. has a profit margin of 10% and a total assets turnover of 0.30. The president…

A: The asset turnover ratio measures a company's assets' ability to generate income or sales. As an…

Q: Thorpe Mfg., Inc., is currently operating at only 85 percent of fixed asset capacity. Current sales…

A:

Q: Consider the following simplified financial statements for the Wims Corporation (assuming no income…

A: Working

Q: A company has a profit margin of 25%, an asset turnover ratio of 1.5, and an equity multiplier ratio…

A: Return on equity is a ratio which measures the return to company in terms of equity. It indicates…

Q: Menendez Corporation expects to sell $ 12 million. Costs, excluding depreciation tion, will…

A: Data given: Sales                                   = $12 milion Cost  (75% of Sales)           = $…

Q: a) A company has a profit margin of 8.87%, total asset turnover of 2.81, assets of $67, 000 and…

A: ROE is referred to as the return on equity it helps to determine the profitability in terms of…

Q: Weber Interstate Paving Co. had $450 million of sales and $225 million of fixed assets last year, so…

A: Sales at full capacity = Actaul sales / %of capacity used = 450/40% = 1125 So, Fixed assets/capacity…

Q: Last year Blease Inc had a total assets turnover of 1.33 and an equity multiplier of 1.75. Its sales…

A:

Q: Kaleb's Karate Supply had a profit margin of 10 percent, sales of $27 million, anc assets of $8…

A: Total asset turnover is a financial efficiency ratio that measures a company's ability to generate…

Q: Last year Baron Enterprises had $775 million of sales, and it had $270 million of fixed assets that…

A: The asset usage  =  65% of Fixed Assets                            =  0.65 * $270 million…

Q: Williams & Sons last year reported sales of $73 million, cost of goods sold (COGS) of $60 million,…

A: The inventory turnover ratio has increased which shows that the company is selling the goods…

Q: The Barnsdale Corporation has the following ratios: A0*/S0 = 1.6; L0*/S0 = 0.4; profit margin =…

A: Additional Funds needed (AFN): A company may need to raise funds needed for expansion when its…

Q: Thorpe Mfg., Inc., is currently operating at only 96 percent of fixed asset capacity. Current sales…

A: Fixed assets are assets that are held by the business for longer period of time. Capital intensity…

Q: Sales of your company is $1 mil, your total assets are $600k, your purchase cost is half of your…

A: Return on assets(ROA)= It is calculated by dividing Net income to Total assets and expressed in…

Q: Weber Interstate Paving Co. had $450 million of sales and $225 million of fixed assets last year, so…

A: Solution:- When an asset is sold, there is cash inflow due to sale proceeds. On the other hand, when…

Q: Ian Goods, Inc. has a total assets turnover of 0.30 and a profit margin of 10%. The president is…

A: The correct answer is Option (c).

Q: of its fixed assets at book value so that it was operating at full capacity, with sales held…

A: Information Provided: Sales = $450 million Fixed assets = $225 million FA/Sales ratio = 50% Capacity…

Q: Required: a1. Produce an income statement for 2020. Assume that net working capital will equal 50%…

A: Information Provided: Increase in net fixed assets = $200,000 Revenues to Total assets = 1.50 Annual…

Q: Williams & Sons last year reported sales of $15 million, cost of goods sold (COGS) of $12 million,…

A: Inventory Turnover Ratio : The inventory turnover ratio is the relationship between inventory and…

Q: Udar limited is considering a change in its credit terms from 2/10 net 30 to 3/10 net 45, change is…

A: Credit terms means the terms and conditions of an enterprise through which it sells the goods on…

Q: Viron Corporation has a cash conversion cycle of 100 days and a bank credit line of $5 million at 5%…

A: Cash conversion cycle refers to the number of days which has incurred in converting the investment…

Q: Consider a retail firm with a net profit margin of 3.36%​, a total asset turnover of 1.88​, total…

A: Total Assets Turnover = Net SalesAverage Total Assets Net Profit = Net Sales x Net Profit Margin…

Q: A market research firm with current sales of $750 does not expect any growth in sales for the next…

A: Here, Current sales = $750 Current expenses = $160 Expenses for next year = $240 Expenses for second…

Q: Mitchell Manufacturing Company has $1,600,000,000 in sales and $390,000,000 in fixed assets.…

A: Fixed Asset to Sales Ratio The fixed asset to sales ratio is also known as the fixed asset turnover…

Q: Last year sales were $300,000, net operating income was $75,000, and averageoperating assets were…

A: Last year expenses = Sales - Net operating income = $300,000 - $75,000 = $225,000

Q: KJ Goods Co. has a total assets turnover of 0.30 and a profit margin of 10%. The CEO is unhappy with…

A: Asset Turnover Ratio= 0.30 Old Profit Margin= 10% New Profit Margin= 15%   Calculate the new asset…

Q: Strickler Technology is considering changes in its working capital policiesto improve its cash flow…

A: cash conversion cycle

Q: Imagine that a company is forecasting the following income statement for the upcoming year:…

A: Let "S"be the desired level of sles to achieve the target net income of $ 2,000,000Operating costs…

Q: A company has $20 million in cost of goods sold and an inventoryturnover ratio of 2.0. If it can…

A: The question is based on the concept calculation of inventory turnover ratio. Formula as,

Q: Weber Interstate Paving Co. had $450 million of sales and $225 million of fixed assets last year, so…

A: In the given question we are required to calculate how much cash (in millions) would have the…

Q: how much cash (in millions) would it have generated?

A:

Q: Last year Jain Technologies had $250 million of sales and $100 million of fixed assets, so its Fixed…

A: Fixed asset to sales ratio is an efficency ratio which measure how well the company uses its fixed…

Q: Weber Interstate Paving Co. had $450 million of sales and $225 million of fixed assets last year, so…

A: Fixed asset equivalent to Extra Capacity requires to be sold off.

Q: Williams & Sons last year reported sales of $39 million, cost of goods sold (COGS) of $30 million,…

A: Inventory turnover ratio can be calculated by cost of goods sold divided by average inventory.

Q: Fritwell has an asset turnover of 2.0 and an operating profit margin of 10%. It is launching a new…

A: ROCE is a financial ratio that determines company’s profitability and capital efficiency. Higher…

Q: & Sons last year reported sales of $12 million, cost of goods sold (COGS) of Inventory Management…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: The Manning Company has financial statements as shown next, which are representative of the…

A: Income Statement The purpose of preparing the income statement is to know the net income which are…

Q: Last year, YG had P250,000,000 of sales and P100,000,000 of fixed assets, so its FA/Sales ratio was…

A: Sales Revenue: The amount which a company gets from the sale of disposals of their manufactured…

Q: The Board of Directors is dissatisfied with last year's ROE of 15%. If the profit margin and asset…

A: GIVEN The  Board of directors is dissatisfied with last year's ROE of 15%.If the profit margin and…

Q: Consider a retail firm with a net profit margin of 3.5%, a total asset turnover of 1.8, total assets…

A: ROE is Return on equity, which means how much net income has been attributable to the equity…

Q: Williams & Sons last year reported sales of $38 million, cost of goods sold (COGS) of $30 million,…

A: Inventory Turnover ratio is the rate at which a company sells and then replaces its inventory in a…

Q: Williams & Sons last year reported sales of $127 million, cost of goods sold (COGS) of $105 and an…

A: Given information: Sales reported of $127 million, COGS is $105 million, Inventory turnover ratio is…

Q: Last year, Triangular Resources earned $4.6 million in net operating income and had an operating…

A: Total Assets Turnover ratio= RevenueAverage Total Assets Operating Profit Margin = Net Operating…

Q: Consider a retail firm with a net profit margin of 3.71%, a total asset turnover of 1.78, total…

A: ROE of a firm means return on equity. It denotes the rate of return which is earned by the equity…

Q: Mitchell Manufacturing Company has $1,500,000,000 in sales and $260,000,000 in fixed assets.…

A: Calculation of Full Capacity Sales, Target Fixed Assets/Sales Ratio and  Increase in Fixed Assets:…

Conversion Cycle

Conversion cycle is also known as cash cycle or net operating cycle. Conversion cycle refers to how much time a company takes to turn its investments which is done from stock or any other financial resources into cash flows from sales.