MyLab Accounting with Pearson eText -- Access Card -- for Horngren's Financial & Managerial Accounting, The Financial Chapters (My Accounting Lab)
5th Edition
ISBN: 9780133877281
Author: Tracie L. Miller-Nobles, Brenda L. Mattison, Ella Mae Matsumura
Publisher: PEARSON
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Chapter 9, Problem 9.14SE
To determine
Asset turnover: It is a ratio that measures the productive capacity of the assets to generate the sales revenue for the company. Thus, it shows the relationship between the net sales and the average total assets. The following is the formula to calculate the ratio:
To Compute: the asset turnover for the Company B for the year ended May 31, 2016.
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Computing the asset turnover ratio
Biagas, Inc. had net sales of $55,500,000 for the year ended May 31, 2018. Its beginning and ending total assets were $52,800,000 and $98,500,000, respectively. Determine Biagas’s asset turnover ratio for year ended May 31, 2018.
In its 2017 annual report, Campbell Soup Company reports beginning-of-the-year total assets of $7,837 million, end-of-the-year total assets of $7,726 million, total sales of $7,890 million, and net income of $887 million.
Compute Campbell’s asset turnover. (Round answer to 4 decimal places, e.g. 4.8726.)
Asset turnover
enter asset turnover in times rounded to 4 decimal places
times
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Compute Campbell’s profit margin on sales. (Round answer to 2 decimal places, e.g. 4.87%.)
Profit margin on sales
enter profit margin on sales in percentages rounded to 4 decimal places
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Compute Campbell’s return on assets using (1) asset turnover and profit margin and (2) net income. (Round answers to 2 decimal places, e.g. 4.87%.)
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In its 2014 annual report, Campbell Soup Company reports beginning-of-the-year total assets of $8,113 million, end-of-the-year total assets of $8,323 million, total sales of $8,268 million, and net income of $807 million.
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Compute Campbell’s asset turnover. (Round answer to 4 decimal places, e.g. 4.8726.)
Asset turnover
times
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Compute Campbell’s profit margin on sales. (Round answer to 4 decimal places, e.g. 4.8726%.)
Profit margin on sales
%
LINK TO TEXT
Compute Campbell’s return on assets using (1) asset turnover and profit margin and (2) net income. (Round answers to 2 decimal places, e.g. 4.87%.)
Return on assets
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Chapter 9 Solutions
MyLab Accounting with Pearson eText -- Access Card -- for Horngren's Financial & Managerial Accounting, The Financial Chapters (My Accounting Lab)
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