EBK CFIN
5th Edition
ISBN: 9781305888036
Author: BESLEY
Publisher: CENGAGE LEARNING - CONSIGNMENT
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Chapter 2, Problem 8PROB
Summary Introduction
To determine: Sales Revenues, Net Income and Profit Margin
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At the end of the year, Wrinkle Free Laundry (WFL) had $150,000 in total assets.
(a)If WFL’s total assets turnover was 2.0, what were its sales revenues?
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At the end of the year, Universal Utilities (UU) had $1.5 million in total assets. Its total assets turnover was 1.4, and its return on assets (ROA) was 7.14 percent. What were UU's sales revenues and net profit margin?
The balance sheet of ATLF, Inc. reports total assets of $950,000 and $1,050,000 at the beginning and end of the year, respectively. Net income and sales for the year are $100,000 and $800,000, respectively.
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b. 15%
c. 10%
d. 80%
e. 12.5%
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