Sub Station and Planet Sub reported the following selected financial data ($ in thousands). Sub Station’s business strategy is to sell the best tasting sandwich with the highest quality ingredients. Planet Sub’s business strategy is to sell the lowest cost sub on the planet. Sub Station Planet Sub Net sales $ 110,149 $ 63,971 Net income 27,822 5,392 Total assets, beginning 77,083 42,199 Total assets, ending 120,171 48,333 Required: 1. Calculate Sub Station’s return on assets, profit margin, and asset turnover ratio. (Enter your answers in thousands of dollars. (i.e. 123,000 should be entered as 123).)
Sub Station and Planet Sub reported the following selected financial data ($ in thousands). Sub Station’s business strategy is to sell the best tasting sandwich with the highest quality ingredients. Planet Sub’s business strategy is to sell the lowest cost sub on the planet. Sub Station Planet Sub Net sales $ 110,149 $ 63,971 Net income 27,822 5,392 Total assets, beginning 77,083 42,199 Total assets, ending 120,171 48,333 Required: 1. Calculate Sub Station’s return on assets, profit margin, and asset turnover ratio. (Enter your answers in thousands of dollars. (i.e. 123,000 should be entered as 123).)
Chapter9: Responsibility Accounting And Decentralization
Section: Chapter Questions
Problem 4EB: The following information is from Good Read Books. Good Read is a regional book store with three...
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Sub Station and Planet Sub reported the following selected financial data ($ in thousands). Sub Station’s business strategy is to sell the best tasting sandwich with the highest quality ingredients. Planet Sub’s business strategy is to sell the lowest cost sub on the planet.
Sub Station | Planet Sub | |||||||
Net sales | $ | 110,149 | $ | 63,971 | ||||
Net income | 27,822 | 5,392 | ||||||
Total assets, beginning | 77,083 | 42,199 | ||||||
Total assets, ending | 120,171 | 48,333 | ||||||
Required:
1. Calculate Sub Station’s return on assets, profit margin, and asset turnover ratio. (Enter your answers in thousands of dollars. (i.e. 123,000 should be entered as 123).)
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